ALLCON,
I was recently contacted by NFX to lease my interest in 40 acres in Duchesne county Utah.
My question is, as there has existed a producing well in the section since 3/2012, with cumulative amounts of both oil and nat gas, can anyone please help me to understand in specific what my actual interest and/or royalties may be?
The particulars are as follows:
Gross Acres - 40.0 ac.
Net Acres - 0.0714275
Royalty - 1/6
Section - 640 ac.
Location: Duchesne county,
T3S, R2W, Sec. 28 NESE
The well in production is: Nickerson 6-28-3-2W API 43-013-51006
Operator: Newfield Production
Last report: per Utah O & G commission 8/2012
Oil - Cummulative 20700 BBLS appx.
Gas - Cummulative 18000 MMCF appx.
My question is, what may be my royalties as it applies to the cummulative well production as of 8/2012? Not withstanding taxes and deductions?
Also, may any please show me the actual calculations to that end as they may apply to my situation?
Once known I am sure that I can figure all other royalty estimates as they pertain to daily, monthly, and declines.
I have not received any royalty check(s) or statements as yet.
Any and all assistance is greatly appreciated. I am told that my interest may be small.
Thanks,
Travis
Travis, are you certain that the pool/spacing for the well is 640? If the pooled acreage is less it would throw the calculations off in your favor. Try dividing 20700 bbl of oil by 640, each acre would have 32.343 bbl attributed to it, multiply by .1667 royalty = 5.39 bbl per acre multiplied by your net acreage of 0.0714275 = 0.3851069 bbl at $80 per bbl is about $31 in royalty. If I added in the gas I doubt it would make much difference even if it were not flared off, which there is a good chance it was. Is there any chance that .0714275 was not your net acres but was actually your decimal interest? If you had a decimal interest of .0714275 you would have 45.7 acres in the 640. 45.7 X .1667 = 7.62 acres X 32.343 bbl = 246.47 bbl X $80 = $19,717 before taxes and deductions. In any case I think this would be descriptive of the calculation you need to do, either way.
Thank you much,
I did go to the county office in Duchesne, and found that the 0.0714... interest indicated was due to a 1/14 deed to my uppers. Ok, that said, I did find that another 1/3 was deeded to another. As the initial 1/14 would have been split between two, and the other never had any wife or decendants, the 1/14 is to me.
My qwerry is, as the one who deeded the 1/14 to me via my family, per county record, never deeded to any one, his almost 2/3 rights, and it seems he had no heirs, and it seems that the 2/3 may be dormant, Per Utah law and succession rule, would not that 2/3rds fall to the same as the afore mentioned 1/14th? I have looked into the accession, and the intestate issues and cannotfind a bad. Both the land people with Wollcott and Newfield are of no real assistance. For obvious reasons.
If found my interest would go from .071 to .667. So you can see why no help on their end.
One thing I must do is to establish accession. And/or succession. But Wollcotts rep should have done so.
So, how may I proceed?
Any assistance is greatly appreciated.
If the party who died without issue had no will the property would go to heirs according to intestate inheritance law. I will not hazard a guess as to the law in Utah. It is something you could look into, I wouldn't spend a huge amount of money on it until you at least know it includes you. You might get together with any possible heirs to iron things out.