Until January 2020 I was receiving monthly payments on gas/minerals from Newfield/Encana/Ovintiv on the Summers wells in Section 27-T4N-R11E, Hughes County Oklahoma. This year, I’ve received payments in March and April only. Is anyone else experiencing the same or know why payments have virtually dried up?
Several reasons: 1-check your division order and see if you have a minimum of $100. You can reset it to $25.
2-the COVID-19 shut down and the Saudi Arabia/Russia tiff have a combined effect of drastically lowering demand with a huge supply. The balance has not evened out yet as demand is growing slowly.
3-see 2 above-Oil Prices dropped drastically in April and May and are just now starting to rise. Many oil wells were completely shut in or choked back in May and June. Your wells are gas, so that isn’t it.
4-natural decline in the wells means that every month has less and less volume. You may just not have enough volume at the current price levels to make the minimum on your DO. Those are gas wells, so the price on them did not drop as much as folks with oil wells who had to shut in.
5-Newfield sold the Summers wells to Trinity Operating in September of 2019. Have you checked with them?
A combination of any and all of those may be in effect.
Thank you for answering. I didn’t realize Trinity has those wells now. That explains it.
Do you need an address for Trinity?
I have it, thank you.
I am receiving checks from Trinity Operating for wells in the same area that have gone through the same transfers. I can attest to the significant decrease in the the payment amounts.
Thank you, Diane. I appreciate knowing I’m not the only one experiencing a decrease.