Anyone else experiencing late royalty payments from Contango in Payne Co.? I emailed them early last week and have received no response. Last royalty payment was for August production paid 11/25/2020.
My last payment from them was in April 2020 but from another county. Check your Division Order and see if your minimum is set at $100 or if you reset it at $25. If you share the section, township and range, I can check and see if the wells are producing. A lot of wells were shut in from April to ?? due to Covid drop in demand, so not all of them are back up and running yet.
Exact same for me also, last payment 11/25/2020, for August production. The only difference is my ownership is in Garfield county. The OTC still as of Friday has not shown production for September production. I guess it’s hurry up and wait, every since they took over for White Star their payments have been very erratic.
I am concerned about Contango’s financial status as they bought all of White Star’s production and closed on the deal just before prices tanked in March. If they are experiencing cash flow issues that would account for their slowing royalty payments. I have not seen any financial news on their company that address any cash flow concerns yet, but I am continuing to monitor. Their lack of response to my email inquires just heightens my concerns. My royalty payments are usually more than $500 per month so there are no minimum payment issues that could hold up payments.
Ronald, I’m also experiencing a delay in royalty payments from Contango for interests in 3 Payne County wells. My last royalty check was in August for production in May. Per the Oklahoma Tax Commission website, two well shows production for Jun-Aug and the third shows production for June & July (no production reported for September yet per the previous poster). Incidentally, it doesn’t look like these wells were shut-in when prices tanked last year so I am not sure what is causing the delay. A call to their owner relations department might reveal more information. If not, you could have your attorney send them a letter and that might help get things back on track but ultimately won’t address the root cause.
Let me know what you find out and I will do the same! Thanks, Matt Sands
I have the same financial concerns as Matt. I will check my wells for shut in and give them a call. I am not sure I have even gotten a new DO from them so I can make sure it is $25 minimum. Need to check my files. With COVID protocols, it may have slipped down in importance. Got the first check so they know I exist. With a bunch of us contacting them, they may get the message.
Whitestar then later Contango have been barely hanging on. Hopefully a competent, prudent and reasonable operator will come in and take over their wells and leases. They sure are not doing it…
Received the following response to my second email.
My apologies for the lack of response to your original email.
Unfortunately, we were unable to process our December payments at the end of the year. We are on track to get payments out early next week. If I can help with anything else, please let me know. Margaret JIB and Revenue Inquiry Contango Resources 405-551-3946
I will confirm when payment is received.
Mr. Norton, I text OKC office last week( 4th-8th)and was told that RI payments would be posted this week(11th -15th). I believe you are correct in that they’re strapped financially. Hope we get our tax info by Jan. 31st. according to the law. James C.
The Contango payment for September 2020 production was received on my wells today. I trust other royalty owners received theirs also. Better late than never…
They have not paid me since April!
Ronald, I am in the Aldean and Boomer wells in Section 3-18N-2E Payne County and having same issue. If I can get anywhere with this, I’ll let everybody know. Thanks for posting.