Can anyone tell me about this well drilled by Avalon Operating, LLC. I have just received a division order. It has on it Revenue Final. I do not know what that means. It looks like the well was drilled May of 2017. Since I had not received a previous Division Order and this says Revenue Final I am thinking it was not a good well. Does anyone have any information.
Thanks, Val Connell Carter
When they propose a well that goes over two sections, they predict what the final split will be. After the well is drilled and surveyed, they issue a final determination. Since the well spud on May 17, 2017, it probably took about three-fivemonths to drill and complete. The Ok tax site lists its active date as 10/3/17, so that makes sense. First sales were in October. They have to pay you six months after first sales, so they were supposed to send you a check in April. If they did not, then they were behind in the division order title work and you are just getting it now. You need to check the division order to make sure the decimal is correct. The formula is net acres/spacing acres x royalty x % of perforations in your section. The % of perforations should be on a cover letter. If the decimal comes out correctly, then you can sign the division order and return by certified mail return receipt. Also, you need to put in your own cover letter and request the statutory interest penalty of 12. The well is fine, the "final" just meant that the percentages of the well in 21 and 16 had been determined.
I truly appreciate your info. I did talk with Avalon Operators today. I am afraid the well is reporting about 5 barrels a day or perhaps even less so I am not going to worry too much. I was, of course, hoping for a better well!!!! I always appreciate your remarks and effort to educate us. Many thanks, Val Carter
Well, that is discouraging. They still owe you interest!
