Greetings, We received two letters from BTE Energy that referenced a 59 page contract for the Unification of West Goldsby Field-Sections 27,33, and 34 Township 8 North, Range 3 West and Section 3, township 7 North, Range 3 West, all in McClain Co. The Plan Document is authored by Twisted Oak Operating LLC. We have a small interest in said Unit. Is there anyone similarly situated that knows the pros or cons of signing the Ratification Plan? The formula is found at www.twistedoakoperationgcom./plan-of-unitization Any advice welcomed!
Plan of Unitization | Twisted Oak Operating, LLC This spelling works better.
Thanks, eyes were tired after reading 59 pages. Any input on proposal?
I did not read the entire 59 pages. I did a quick skim to see if it was a regular waterflood or something else. At a high level, it looks like a regular waterflood for conventional wells. We have been involved in older secondary recovery units over the decades. In the long run, it has made us quite a bit of extra royalty money. These were secondary recovery initiatives to use injected water to push the remaining reserves to the top of the structure to get more hydrocarbons out of the reservoirs. The decimal amount of our original ownership decreases since the acreage increases by adding all of the tracts into the waterflood acreage. But, on the flip side we have benefited from recovering royalties from the whole unit and not just our few acres. It usually takes about two thirds of the owners to sign. I did not hunt down the exact percentage in the document.