Question About Royalty Check


#1

I recently received a check from Staghorn. Normally I get an under $200 check every couple of months. This month I got a large check! The stub listed production as far back at 12/2017. How does that work? Why wouldn’t they have released the funds as they were produced? I don’t recall getting any info on sinking another well/spacing etc. Anyone have any ideas?
Thanks
Susan Coolen


#2

They may have produced it back in 2017 and had it put in storage until now. Most likely because oil prices, so they waited for prices to go up a little before selling.


#3

H’mmmm Thanks…I didn’t know they could do that!
Susan


#4

The dates on the check stub is the sale date. You are paid by date of sale, not production. I receive payments from one well that produces about a barrel a day. Every 5-6 months the purchaser picks up a load of around 150 barrels. That is the transaction that generates the check.

You would need to look at the entire stub and compare past stubs to see what happened.

It could be a adjustment going back to Dec 2017. It is also possible there is a new well. As much as we can guess about what happened, there is not enough data to tell.