David, Devon has 6 months after the date of the first sale which was June 11, 2014 to make your first royalty production payment. Sometimes, they run a little behind, but you should expect a check around Dec 2014.
David, The DO should arrive before your check, but I do not sign the operators division order. Instead, NARO recommends using this (NADOA) Division Order http://www.nadoa.org/forms/div_ord.pdf** and include this statement:**
THIS INSTRUMENT DOES NOT MODIFY OR AMEND THE TERMS OF ANY OIL AND GAS LEASE. ALL ROYALTIES DUE AND PAYABLE UNDER ANY OIL AND GAS LEASE SHALL BE CALCULATED AND PAID AS PROVIDED IN THE LEASE. THIS DIVISION ORDER IS EXECUTED WITHOUT CONSIDERATION AND MAY BE REVOKED AT ANY TIME.
http://www.mineralweb.com/owners-guide/leased-but-not-producing/div…
Judy, what S-T-R?
http://www.glorecords.blm.gov/ConvertedImages/LSR_44580_Sheet_1.PDF
is the pdf for 17N 2W. I get 633.65 acres since there is the Cimarron River running through section 2.
Then 78.54/633.65=.1239485 x .1875=.0232403. BUT the well starts in Section 26 to the north so you don’t get the 100% for section 2. Check the Division Order. It should have a % on it for just section 2.
Judy The well is a multi unit, so you don’t get the full 100% of the well. Most of my Division Orders like that have xx% section 35, xx% section 2. See if that is on it. Also, make sure it is the NADOA form. You can substitute if it isn’t, but right now, let’s make sure you have the correct Royalty Interest.
Devon finished Meg in 19-19N-3W on June 11, 2014 and we have not seen a DO or any other information from them, should I try an contact them or continue to wait. We are very new to all this.
Some are reporting companies are laying down rigs. Don’t worry, they didn’t lay them down due to lack of future drilling and production. There was a Fed law in 2010 that made them lay down the old dangerous rigs by 2013. http://www.rigzone.com/training/insight.asp?i_id=354
Also, Good news is that natural gas prices are rising.http://online.wsj.com/article/BT-CO-20141120-706307.html?mod=WSJ_En…
and “as the economies of China, India, and other developing countries grow, their demand for energy and chemical products will rise accordingly, resulting in greater U.S. exports of petroleum and petrochemicals.” http://www.bizjournals.com/prnewswire/press_releases/2014/11/10/DA6…
“Drilling contractors are building a lot of new rigs - expensive, sophisticated, highly productive new-generation rigs that are specifically fit for shale exploration and exploitation. 2015 may set a new record, with new deliveries expected to exceed 150 rigs…at the end of 2011, the U.S. land drilling market had slightly over 400 AC drive rigs. This number will have more than doubled by the end of 2015.”
http://seekingalpha.com/article/2536175-helmerich-and-payne-how-lon…
Linda, Oil futures are averaged hedged at $80 for the next 5 years, because most US shale full cycle (exploration & startups) capital expenditures needs oil at $70-80, but some half cycle (continuation of drilling) can survive with oil as low as $30. DVN is in good debt fee position. SD has big debt, but can continue drilling at very low costs. Buyouts are coming. Companies with little to no debt are in great shape. Feds are keeping rates low until end of 2015 or early 2106, after that rates will rise and banks will lend to the surviving companies.
anyone dealing with Sundance Energy in Logan County and getting paid their residuals on a timely basis - however that is described in this business!!
Several of the oil companies are holding the oil to be sold. I have several wells that I haven’t received an oil check from for a couple of months, but I know the wells are pumping, but oil is being stored. I am still getting my gas checks. This is just another roller coaster in the oil business, that is why you don’t set a budget up using oil/gas checks.
Virginia is right, I’m experiencing the same oil storage no production sale problem, but it could be a short term problem that will correct in less than 2 years. Big US banks are now healthy and have huge stockpiles of cash to complete oil/gas mega deal lendings. This price shake down which is exactly what the banks are hoping for, because the US gov insists it wont’s bale the banks out again and healthy banks lending to healthy companies is the only way to avoid the bale outs. Saudis need oil above $70, because Saudi oil revenues comprises 90 percent of their countries total revenues. Sustained low oil for more than 2 years means Saudis will have to get used to a low level of living and remember, they are spoiled Kings and Princes. Russia and Iran needs oil above $90 - 100 just to produce, not to mention their costs due to lack of infrastructure. Citibank’s 2020 article reports: "All of these details matter because they are shaping the emergence of North America as an energy superpower that is poised to usher in disruptive changes to global oil markets, trade, and investment."
https://www.citivelocity.com/citigps/ReportSeries.action?recordId=30&src=Home
Plymouth,in Garfield and Grant counties are still sending oil and gas royalties so am guessing they have hedges in place.
Know that Sandridge and Devon have hedges with Sandridge’s expiring Dec 2015.
To add to the list, is anyone getting paid on the Slawson Crow well in 35-19N-4W?
Current low oil prices have caused China to increase its oil imports by 50% and it is filling up a strategic reserve. Now, China’s has demand and US has supply. OPEC will have to cut production in order to stabilize the price. Some think OPEC will cut in 2 yrs, others believe sometime in 2015.
For me, 1 plus 1 still euals two, and when I noteice that we are using our own oil in a time when we vowed never to use our own but other nations oil so we would have plenty if our backs were to the Proverable wall, this just does not add up to 3. So, I am still more convinced than ever that what is down under our feet and noses is more crude than we could ever imagine, and the new technology sees this fact, and the 10.000 plus bbd wells will become more abundent in our immediate future. This is why I still say, do not sell your mierals. At any price.
Does anyone know of any activity on Logan County,Ok. 29 19N 2W? We are mineral owners of 29 19N 2W. Will appreciate your information.
Clarence W. Henderson, Opal M. Henderson,Terrence Henderson
http://imaging.occeweb.com/OG/Well%20Records/1DD18D91.pdf
http://imaging.occeweb.com/AP/Orders/occ5144753.pdf
Above is info on 29
Ronald,
I will agree with don’t sell your minerals.
I have seen this oil slump many times. Good time for oil companies to buy out little companies, get bonus cheaper, get rid of die wood in companies. Usually takes about 2 years before we will see a slow turn around.
By then, we will see new technology and new investors. So just ride it out. Banks will start loaning money again at a higher rate. It’s just sat and wait time.
Virginia and Ron, I concur