Recent royalties reflect stuff going back to 2018

We received a reasonably decent royalty payment this past month. When I finally got the statement for the royalties I was surprised to see the date of transactions. Most of the value are for dates going back to 2018. Can anyone shed a light as to why this might be? My cousin offered perhaps Apache is simply clearing up stuff (such a technical financial term) prior to closing down operations for the six wells on our lease.

Actually, that is probably what they are doing. Sometimes companies do regular field audits and double check the meters and recalculate any corrections. Sometimes, they get new accounting software and have to go back and reset and recalculate. You should see a deletion for an old month and a new replacement number. It does happen fairly often.

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Ughh. So that may be the last of the royalty checks for those gas wells?

I do not know. Were they about to die before they shut them in or are they just shutting in temporarily due to COVID-19? Mostly oil wells are being shut in. Were your wells just trickling in? Is there a pipeline issue where you are? Could be lots of factors at the moment.

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our wells came on-line in 2018. An analysis by a firm we know indicated they were not even pushing the wells in terms of use. As to pipeline access, we are right on the pipeline apache ran just south of Toyah. I believe that pipeline is connected to Waha and to Apache’s plant near Balmorhea.

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Hopefully you will come back online when it is economic to do so. Call Apache and find out-if they will tell you.

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