Has any UMO received money of off  the Sanford well # 241331.  There are 40 unleased in this section.

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#241331 is not yet reported complete and turned to sales.  UMO's in this unit will receive income after the well production has returned the operator's initial well costs.  Until we can see some production reports, it's impossible to guesstimate when that may be.  Are you familiar with the mineral code as it applies to Unlieased Mineral Owners?  You may wish to read the information in this group.

 

http://www.gohaynesvilleshale.com/group/unleasedmineralinterests/fo...

I did write a them and received a report on the well. 

The well is completed.

 All they sent were the cost of everything pretaining to the well and the final cost amount of the well. But nothing about  the production or sales.

  Some of the leased ones have received checks from them . So I was thinking they must be selling the gas also.

I think I will write again to them and ask for production reports.  I did this time but will do it again.

Thank you for sharing .

About 90 days after the well was turned to sales, monthly production reports will appear in the SONRIS Lite Well File.  Since you have the well cost, you can then start to monitor cumulative production and get a rough idea of how long the well will take to Pay Out.  Keep in mind that the operator does not accrue 100% of revenue against well cost as somewhere between 20 and 25% will be paid in royalties to those mineral owners that did lease.

The well cost is only part of the story, there will be monthly operation and supervision costs as well.

Also, i am not sure the royalty burden would matter. As a UMI you would get your pro-rate share of the units TOTAL production. This would of course be applied to your share of well drilling, completion, operating, and supervision charges.

 

It is important to request a monthly statement.

Then the well revenue paid out in royalty is counted toward recouping the cost of the well?
Skip, the royalty % is not relevant for unleased mineral owners (carried working interest owners) because pay-out is based on gross revenue.
My point is not conerning revenue to UMI's after pay out.  It is production revenue applied to well cost by the operator.  It seems unlikely to me that the operator has to pay out royalty to all the royalty interests in the unit, not the UMI's, And must count that revenue toward well pay out.
Skip, I am talking about both before and after pay-out.  There is no royalty associated with the carried working interest owner's tract participation.  If 64 acres of a 640 acre unit is unleased then the operator is paying zero royalty on 10% of the production so pay-out is determined using gross revenue associated with that acreage.
Good example, however I am not referring to royalty associated with carried working interest owners.  I am referring to the fact that the operator must pay from revenue the royalty owed to those royalty interests, including ORRI's, who are Not Carried.  And that revenue is not counted toward well pay out.
Skip, pay out is based on gross revenue before royalty deduction.  If you are calculating pay out from my above example, the operator uses 10% of capex, 10% of opex & 10% of gross revenue.
Thanks, Les.

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