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

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AW, you should request and receive monthly pay-out statements that include initial well (and other) capital cost, monthly operating cost and monthly production and gross revenue.  The statement should also have a running balance indicating the well's progress toward reaching pay-out. 
  THANK YOU  FOR THE HELP, I AM LEARNING.
The production report is a quarterly generated report and its interval of distribution is not relevant to the well cost report which is due 90 days after completion. The quarterly report contains a sworn attestation to the current payout status and is pretty straightforward. I would guess the first week of march would be an expected time for oct-dec reports.
GL, thanks for the information on statement frequency.

I receive a quarterly notarized statement on a few unleased interest acres but I don't know how to read it, the statement does not appear to show how much is needed to reach payout. It show expenses and and income but each statements amount changes. There does not seem to be a figure for estimated  payoff amount or projected date or amount needed to reach that payout. Do I need to calculate that myself and how would I go about doing so?

VSC,

I also receive a statement, and it shows, as you say, expenses and income.  Add up all the expenses.  Add up all the income.  If the total income exceeds the total expenses, you've reached payout.  The operator cannot estimate when payout will be reached, because he does not know what future production will be (i.e., income) and he may not be able to anticipate unexpected problems with operating the well (i.e., expenses).  

I think the trick is to just plot total income over time, and compare that to total expenses over time, and when the lines cross (i.e., income exceeds expenses), that is when you reach payout.

Maybe my statement is clearer than yours -- it shows the monthly expenses and income, going back to the beginning of the well.

i'm interested being a umo on a 5 acre parcel in caddo parish where one well has been drilled by Chesapeake, 1-16-14 which is under I 49.

we turned down a lease a few years ago and the  H gas well is at payout. Chesapeake is still interested in signing a lease but pitiful bonus and they would not pay royalty for past production, claiming that money has been spent on drilling.

my brother is terrified of going umo, mentioning being victimized by low payment and "pencil whipped". i'd like talk to a few umo's if you or some of your umo friends have some time to go over the issues in more detail than can be done by e mail.

a conference call to pick your brains and share what we know would be very helpful.

send me a note if you have the time and i'll call to set up a call.

thanks, steve meier

435 828 7475

roosevelt, utah

Lease only if the doc is retroactive to the beginning of the well. Otherwise, someone is double-dipping, already having recovered the drilling cost attributable to your acreage and now attempting to retain royalties as well. The offer you got is pure bs.

Good luck.

steve, did you receive notice from CHK that the well had "paid out"?

Sorry -- I'm no longer UMO.  I took a lease.  However, I'll give credit to BHP -- they gave me royalties from first production, for a well drilled in 2011.  Kudos to BHP.  CHK is so scummy (and I only use this word because profanity is not allowed on this site) if they won't do that for you.

Henry, would you please elaborate a bit on the reasons you believe BHP gave you a retroactive lease...such as very large acreage, no bonus payment, prime location in Haynesville sweet spot, etc.  Also, are you aware of any other retroactive leases given by BHP or any other operator?  Was the lease offer to you unsolicited or did you have to repeatedly request it? Thanks and congrats.

Robert,

I sent you a friend request.  Please accept my request, and I'll tell you about my lease privately.

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