Have a question, am dealing with EOG Resources. How long does it take for them to send a division of order? I have two well in Mountrail County. One is Clearwater 25-3202H started drilling on or about September 10, 2011. The second one Idaho 1-0132H started on or about April 11, 2012. Was told by EOG that will be getting a division of order 6 months back but have not received to date and also have not heard back from them when I contact.
Dustin:
I recieved a division order approx. 2 months before my well was scheduled to be released from confidential well status. You will be paid whether or not the division order is returned. Be sure and check their decimal figures before signing and returning.
Dustin,
I have information on ND production. The Clearwater 25-3202H 1st reported sales was 12/11. Through 9/12 it has sold 92,138 BO & 47,179 MCF. I do not see the Idaho 1-0132H.
Possibly your monthly revenue check falls below EOG's check minimum & has been set up to send yearly checks. If not, it's time for you to have your DO. The well has been selling oil & gas for more than 10 months.
Is there any way of finding out how much money is just sitting there for me?
SWAG for 100% net revenue thru 9/12 should be between $5-6,000,000. Multiply your interest by that number & it will be ballpark.
Sometimes a registered letter works IF they won't talk.
Is the well now closed? Or will it continue to produce? The other Idaho well I believe has changed it’s name or something like that. Also would EOG be paying interest on this royalty?
The well is producing. I would expect continuation.
In OK, we are required to pay interest after 6 months past 1st sales.
I'm guessing but, they are either way to busy for their own good OR there may be some title issue of some kind?
I have mineral holding with EOG. I was also told it would be about 6 months but it's going on a year now with no Division Order in sight. Some people have waited as long as 2 years to get a Division Order. EOG has been slow getting back to me but have eventually followed up. Just be prepared for a long wait. If the Division Order comes sooner be thankful.
Don't be afraid to hire an attorney who can write a demand letter for payment and who can demand payment of interest for late royalties. Just because the operator is required to pay interest doesn't mean they will automatically do that on their own.
I currently have a lawyer finishing up the probate to get mineral rights in my name. I did hear back from EOG last week and they said a December or January payment and for me to check back at the end of the month to get a definite date. So this is good news!
Have been trying to figure out my interest in this particular well. On my AFE from EOG Resources it says next to "Competed Well Cost" "% of interest" is this my interest in this particular well? I did not sign a lease. Was told if I did not sign this AFE I would be a "Non-Consenting Owner" and that is what I did.
Nick said:
SWAG for 100% net revenue thru 9/12 should be between $5-6,000,000. Multiply your interest by that number & it will be ballpark.
Sometimes a registered letter works IF they won't talk.
Not seeing the document could be tough but, USUALLY yes, that would be the interest they are expecting you to pay for.
So how do I figure out how much royalties to expect?
The lease was offered by Contex at 18%
You need to know the net revenue lease of your interest which indicates what the interest is "burdened" with. USUALLY a safe number is 75% so, you would multiply your working interest by 0.75 and that would be the percentage of any revenues you COULD receive less the operating cost to get the oil/gas to sales.
It sounds like you may have had the option of converting your interest to a working interest or you wouldn't be in the well? This happens when a working interest is initially burdened more than they are will to pay for.
I hate to say this, but you lost me buddy! The % of interest that is on the EOG AFE is 0.011480. Have not signed the lease with Contex as of yet. Currently getting mineral rights into my name via probate.
I could be the one lost. I have assumed that if EOG is wanting you to "sign an AFE or you are non-consent" that means your 0.01148% is a working interest ie., a bill paying interest for the well. IF this is the case & you do end up with the 18% lease, your revenue interest would be 0.0001148 x (1-0.18)=0.00009414. So for every $1,000 of revenue the well produced, you would pocket 9 cents.
So would I be better off signing a lease? Or just not worrying about it at all?
I was told by EOG if I did not sign AFE, I would be considered a non-consenting owner and they would take 150% of my costs which is $1100. And I would get the rest of my royalties of this well
I'm not really prepared to answer that question for you. it sounds like if you want to participate in the EOG well, you will be paying your way. Whether it's an economic venture or not is an evaluation that can't be made here.
Your 150% message was just received. I can tell you that MOST non-consent penalties are greater than 150% IF the well was good enough to pay back 150% if it's cost you would then only pay for the operating costs going forward to receive your revenue & not the drilling & completion costs.