I just received a Division Order for S15-T20-N-R04E in Payne County, OK (lease is with Red Fork Investments). I understand this means a well has been completed and now producing. The name of the well is Tiger #1-15H, and I am curious if anyone knows how I can find out the number of barrels of oil this well is currently producing. Also, I am wondering when I might expect to receive the first royalty payment once I have signed and returned the Division Order. Thanks. Terri
Although I have no experience with Red Fork, most oil companies pay between the 20th and the end of the month. Usually they process your DO and put you in a pay status. So 5-10 days after getting the DO, you are usually paid the following payment. So the best guess is you will be paid between 20 and 31 January. That well tested at 137 barrels oil and 77 MCF per day.
Here are the reported Oil Sales. I don’t see the gas sales.
Jun 2037
Jul 2342
Aug 1320
Sept 975
Oct 804
Thanks for the info. When you listed the reported oil sales, does that mean the well produced 2037 barrels of oil for the month of June?? Sorry for my ignorance - this is all new stuff for me! Also, is there a website where I can go to find out the info that you provided??
Yes. However June was the first month of production, but not a full month. Expect that decline to continue although that appears to be falling a bit quicker than normal.
Production data can be searched here.
https://www4.oktax.onenet.net/GrossProduction/PublicSearchPUNbyLegal.php
The later months can be found here from the production reports from the purchasers. It is just a more difficult and time consuming process
Thanks for the information. You are right about the second link being difficult, etc. I wasn't able to use it successfully.
When I looked at the first link (oktax), it shows a category "Well Incentives History" with an "Exp. Date of 05-2017" and states "The incentive may expire earlier than the allotted term, because payoff was reached". Does that mean the well was originally expected to produce oil til 05-2017, but may not reach that date because it's not producing as much as predicted?
I was pleasantly surprised to receive the Division Order because I had no idea that a well had been drilled, so even a few royalty payments are welcome.
It has to due with tax breaks.
Oklahoma offers a tax breaks on non-standard wells. The basic severance tax is 7%. The break is 6/7, paying 1% instead of 7%. This is limited to 4 year or until the oil well pays back the cost of drilling. I think the cost is based on the AFE on the pooling order (authorization for expenditure).
Expect a decline, but some of the wells in the Mississippian in Payne county have been producing 20-30 years.
You have been a wealth of information. I very much appreciate that you took the time to answer all of my questions. I wish you very Merry Christmas and hope you have good New Year!
Merry Christmas to you and your family!
And good luck with that new well!
One more question: Since the OK Tax Commission website says the well tested at 137 barrels oil per day for the month of July, why would it then list the total barrels for the month of July as 2342? Seems the total should be around 4110???
Rick Howell said:
Merry Christmas to you and your family!
And good luck with that new well!