I have a new 5 well pad located T1N BLK 34 SEC 11 A-388 I havent recvd my 1st check yet but I know it will be soon as 1st sales were 4/13. This is my 1st rodeo so to speak & this forum has been my life line for info and education Thank you!! In trying to figure out how long this income will last & to what degree I am LOST!!! I understand it’s a guessing game but how can you make any financial plans? Is there a typical decline rate? Will it even be worth it in a year? Are these wells normally profitable for a few years?
any checks yet I haveseen that average new well produces 500 bbls a day with a 5% decline a year
My husband has received checks from horizontal wells going on 3 yrs now. Not too good at telling output, I’m learning about that. Trying to find a good software system to keep up with that. Anyone have ideas???
I had about a 28% decline b/w the 1st & 2nd complete month
“God bless you and keep you, God smile on you and gift you, God look you full in the face and make you prosper.”
In our area, we have also noticed a steady decline in checks. I reached out to the company and they said it was normal. It’s so frustrating bc you can’t predict anything, or rely on it because you never know what it’s going to be!
There are 8 wells drilled in my section and each check I have received since the first full check in March has decreased by half. Not what I was told by the owner/operator that would happen. He said it would be down by half after two years and then slowly decline. Very disappointing since I had multiple high offers to buy my minerals which, at this rate, would have been more financially feasible. Not sure I’m trusting the oil co. Since I’ve also found out they have restructured the company. Trying to find a oil and gas attorney in the area to check it all out.
I expected the 1st big decline but praying it slows down after that!!! I will know in Sept! Who are you with? I have SM energy so far they have been very honest & helpful but have just started the journey.
Our first check was in April and we’ve noticed a slight decline since, except the most recent month was almost half as previous. Very frustrating. I’ve emailed them several times with questions, and the person I spoke with was nothing but kind and helpful, however, you just never know what the real story is. We are with legacy, which I believe also just restructured. But I am not totally sure on that.
Are you with legacy? This all sounds extremely familiar.
You all need to make an effort to educate yourselves about these issues instead of just flying blind.
These oil companies are required to report the production and disposition totals by field monthly to the TRRC . The information is available on their website if you just learn a few basics about how to access it. Their is also an organization called NARO (National Association of Royalty Owners), which has very useful education programs for members based on the state they are in. Dealing in the rumors and gossip on this forum won't help your cause much.
Joe H. Smith
I have made the effort & have my glasses on. TRC is great along with NARO. This forum has been my life line as most are extremely helpful & knowledgeable!! It is always good to know others experiences & get their opinions.
Thank you, I have made the effort to educate myself on the company and reading their monthly reports. Each month, I take the time to look over the production, but on the most recent one, I noticed a discrepancy with one of the wells. In the report, there was no indication why, hence contacting the company itself, which as I stated, was helpful in their explanation. I am new to this, and trying to learn as I go, and just not following “blindly.” I look to this forum for individuals to help with information and provide similar experiences.
Yes, Penney. I, too, have contacted the company and was told this sort of decrease was absolutely normal, though I was told by the operator differently prior to division orders. The expectations were very different. I have also been told more recently that the paybacks to the transporters was absolutely normal. Legacy also sold part of my mineral lease to another company, Sabalo, and they had a producing well in that area in March. I have yet to receive division orders and cannot reach them by phone or email. Thus, the hiring of an attorney for full review.
We might be in the same area because this is our exact situation. I wasn’t even aware of the sabalo lease until a family member mentioned it. I was told we should get DO from them but I have yet to see anything. Have you contacted either company regarding this? This might be my next move.
I have serious issues with Sabalo. They had my money sitting for about a year and a distant relative told me to call them. I did and received a check. Then another six months went by and I started getting run around. They want new corrected deed notarized and signed by all family members…who are scattered and distant so it is not an option. Or they refuse to release funds. I have asked for alternatives but they keep refusing. This is same deed that is fine for vertical drilling of same area with a different company. After repeated emails and calls with EXTREMELY hostile people at Sabalo, I hired an attorney. Immediately Sabalo stated they were not suspending money but helping me. They sent a check for less than $100. They owe me in the thousands. Again I kept emailing and phoning. A few months passed. I just received a check for partial payment. I just called their Landman and he refused to give me their Title Attorney’s name and or number. I am extremely worried as another side of family has all their money being suspended also…for different reasons. I have several leases with several companies and have never had such a horrendous experience. I’m worried about getting my money and do not know who to call. I have already spent a few thousand on an attorney.
We have had similar issues with Sabalo.
People talking about their experiences with a company are not rumors and gossip. We are talking about our own experiences, not what we “heard.”
You should be working with an oil and gas title attorney who can review the original trust and deed out to the beneficiaries, the correspondence with the oil company, the relevant portion of the title opinion and the oil company run sheet which lists the deeds and other documentation provided to the attorney doing the title opinion. You should organize with other family members to jointly pay the costs. You need to see the exact portion of the title opinion to see what the attorney says is the issue. It is not appropriate for you to be trying to correspond directly with the oil company’s title attorney as he works for the company and not for you. If you or your attorney have already tried sending demand letters (from you, should be by certified mail) and the company will not respond with detailed explanation, then your only option might be to file in court to demand the title opinion, etc. However, if the original deed out of the trust is defective, then the problem is getting all of the heirs to sign the stipulation. And again, by court filing you can demand a list of the heirs as far as in the oil company records. Be aware that some may have died without probate and that the process to clear title can be a long one. The good news is that Texas will accept a probate record from any state, but it needs to be filed in the county.
Thank you. Excellent information. I have done much of the above. I do have the portions of the Title Opinion needed. I have also tried to contact other heirs via email, twice, with no response. My attorney states I need to sue the Trustee in that state to make trustee create stipulation. The trust has been disolved by now. The deed is fine according to another Leasing company who drills vertical on same area. So do I need to sue Trustee? Which is a different state? I have no idea why other members would not want their money. Yet more court costs? I was hoping for alternative. Thank you.
Has your attorney considered a quiet title action or declaratory judgment? You give notice to all potential interest owners and get the title cleared.