# Kraken Oil Division Orders

**URL:** https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170
**Category:** Richland County, MT
**Created:** [October 15, 2018, 2:43pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170 "2018-10-15T14:43:50Z")
**Posts on this page:** 15
**Page:** 1

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### Author: ![Mark\_Presley](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/mark_presley/32/4583_2.png) [@Mark\_Presley](https://www.mineralrightsforum.com/u/Mark_Presley)
#### Post date: [October 15, 2018, 2:43pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/1 "2018-10-15T14:43:50Z")

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Hello, we are mineral owners in a couple of wells in Richland County. They were completed in June and have been producing since then. It’s nearly November, and we still have not received division orders. Anyone have experience with Kraken, and what is a reasonable amount of time to see DO’s?

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### Author: ![M\_Barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/m_barnes/32/10942_2.png) [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [October 15, 2018, 2:52pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/2 "2018-10-15T14:52:16Z")

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Each state has its own regulations, but five-six months is reasonable. In OK, the DO usually comes at about five months because statutory payments are at six months after first sales. Wells can have hundreds of mineral owners and it takes months to do the title work for all of them.

The Montana Oil and Gas Commission (or whatever it is called) has a listing of statutes and regulations. Maybe someone on the forum can point you to the right online link.

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### Author: ![Richard\_Doyle](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/r/5f9b8f/32.png) [@Richard\_Doyle](https://www.mineralrightsforum.com/u/Richard_Doyle)
#### Post date: [October 15, 2018, 6:28pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/3 "2018-10-15T18:28:59Z")

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I am in the same situation as re Kraken and a well in Richland County. I contacted the Montana Board of Oil and Gas Commissioners, by phone and email, to no avail. I also tried to speak with the head of Montana operations for Kraken, Andrew McGhee, but could not reach him. I left a message but have not been called back. His office can be reached at 713-534-1831.

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### Author: ![Mark\_Presley](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/mark_presley/32/4583_2.png) [@Mark\_Presley](https://www.mineralrightsforum.com/u/Mark_Presley)
#### Post date: [October 15, 2018, 10:24pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/4 "2018-10-15T22:24:31Z")

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Thanks, just trying to get a feel for what to expect… we did get an obligatory form letter advising us of Kraken’s filing to the Montana Board their application for a permanent spacing unit, and pooling of the remaining mineral interest owners, which was indeed filed on Oct 3, so I guess we may be getting close. I also talked to a landman at Kraken, and his best guess was Sept for the DO’s. Until we start getting royalty checks, I think we are on our own to dig up information… typical Oil Co, I suppose.

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### Author: ![Robert\_Carleton](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/robert_carleton/32/2494_2.png) [@Robert\_Carleton](https://www.mineralrightsforum.com/u/Robert_Carleton)
#### Post date: [October 16, 2018, 12:17am UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/5 "2018-10-16T00:17:08Z")

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Mark: Glad to see Kraken (and maybe others) are drilling in Richland County once again. If you don’t mind me asking, where is your property located? We are at T22 North, Range 60 East, Section 5 SW 1/4. Have not had this property leased in several years, even though we have had some successful wells in the past.

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### Author: ![Mark\_Presley](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/mark_presley/32/4583_2.png) [@Mark\_Presley](https://www.mineralrightsforum.com/u/Mark_Presley)
#### Post date: [October 16, 2018, 1:02am UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/6 "2018-10-16T01:02:29Z")

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Robert, these are in 25N-59E Sec 7. We also have unleased interest in Sec 18, as well as 24N-58E Sec 11 & 12, which were leased and permitted in late 2014 just before the oil price crash… like to see those developed as well!

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### Author: ![Mark\_Presley](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/mark_presley/32/4583_2.png) [@Mark\_Presley](https://www.mineralrightsforum.com/u/Mark_Presley)
#### Post date: [November 29, 2018, 2:25pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/7 "2018-11-29T14:25:21Z")

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Richard, I got a hold of the Division Order Annalist at Kraken, and they were most helpful. Leslie Robinson…

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### Author: ![Richard\_Doyle](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/r/5f9b8f/32.png) [@Richard\_Doyle](https://www.mineralrightsforum.com/u/Richard_Doyle)
#### Post date: [November 29, 2018, 5:43pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/8 "2018-11-29T17:43:42Z")

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Mark,

I am in your debt for this. I will initiate contact today.

Richard

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### Author: ![Mark\_Presley](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/mark_presley/32/4583_2.png) [@Mark\_Presley](https://www.mineralrightsforum.com/u/Mark_Presley)
#### Post date: [December 8, 2018, 2:17am UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/9 "2018-12-08T02:17:16Z")

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Ok, so I was a bit surprised to receive our first royalty check from Kraken before the Division Order. I was told by the DO analyst at Kraken a few weeks ago that the DOs would be sent out the middle of this month. I was expecting to confirm Kraken’s decimal interest figure with an O&G attorney for confirmation, but was told by a friend that we needn’t go to the trouble to have the DO checked as the oil company (Kraken) had to report to the SEC and take their figure at face value.

Opinions on this would be much appreciated!

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### Author: ![Richard\_Doyle](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/r/5f9b8f/32.png) [@Richard\_Doyle](https://www.mineralrightsforum.com/u/Richard_Doyle)
#### Post date: [December 8, 2018, 4:07am UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/10 "2018-12-08T04:07:36Z")

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That surprises me too. FYI, I contacted the Kraken DO analyst whose name you so kindly provided but have not heard back. For how many months of production did Kraken pay you?

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### Author: ![Mark\_Presley](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/mark_presley/32/4583_2.png) [@Mark\_Presley](https://www.mineralrightsforum.com/u/Mark_Presley)
#### Post date: [December 8, 2018, 4:58am UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/11 "2018-12-08T04:58:33Z")

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Dick, yes, the well started producing in June, and we were paid for 4 months, June through September. Our decimal interest shown on the check stub seems in line with what I was calculating, but this stuff involves a lot of research to verify, and I just feel a little uncertain accepting Kraken’s number for our interest without being confirmed by an independent third party… perhaps I am over paranoid about this and should just sign the DO when it comes and cash the checks.

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### Author: ![M\_Barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/m_barnes/32/10942_2.png) [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [December 8, 2018, 5:56pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/12 "2018-12-08T17:56:23Z")

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Is this for a multi section well or a single section well?  
Generally, the formula is: net acres/spacing acres x royalty for a single section well.  
For a multi section well, you would need to look up the rules for your state, but in OK, the equation is: net acres/spacing acres x royalty x % perforations in your section.  
Texas is slightly different, so check with the Montana Oil and Gas statute.  
I never sign without checking as over the years have found mistakes. Most are right, but never hurts to check. You can call the division order analyst and get them to tell you your net acres and royalty that they used to calculate. Check it against your deed and lease.

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<div class="post-metadata">

### Author: ![Mark\_Presley](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/mark_presley/32/4583_2.png) [@Mark\_Presley](https://www.mineralrightsforum.com/u/Mark_Presley)
#### Post date: [December 8, 2018, 7:33pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/13 "2018-12-08T19:33:56Z")

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Thanks much for that reply Ms. Barnes! This helps a lot. I guess the net acre calculation was what I was thinking of… this is pretty simple after all… it is 2 sections but the horizontal is contained within both, so 100% times the rest of the equation matches extremely close (to the 6th decimal place) and Kraken’s figure is marginally higher than the simple equation figure, so I’m happy with that!

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### Author: ![M\_Barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/m_barnes/32/10942_2.png) [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [December 8, 2018, 7:42pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/14 "2018-12-08T19:42:42Z")

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I am always happy if theirs is a bit higher than mine! Those last decimals don’t matter much, but if it is higher, then I usually sign it. If it is lower by a substantial amount, I call the DO analyst and see where we have different numbers. Don’t forget to send in your W-9. I also change the minimum amount to $25 instead of $100, so down the line when the royalties decline, my kids will continue to get more regular checks. Eventually, they will dry up.

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### Author: ![MRFAdmin\_SV](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/m/e0b2c6/32.png) [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 6:39pm UTC](https://www.mineralrightsforum.com/t/kraken-oil-division-orders/35170/15 "2025-01-11T18:39:34Z")

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