Can anyone offer any legitimate information as to why the following might have occurred: I received my first royalty check today on a new well that began production on 12/20/2011. I was paid the correct percentage for the production which according to my calculation, averaged just over 46 barrels/day of oil. Problem is, when I contacted the company that owns the well (Cordillera) in Feb., I was told it was producing 85 Barrels/day. Also on the Oklahoma Corp. Comm. web site where production numbers etc. are posted, the completed well info shows the initial test data to be 155 barrels/day of oil. Is there a good reason for such a great difference in the numbers.
You are paid when it is sold, not when produced. So it is difficult to tell the numbers on the short term of one month. Even more so becuase it is the first month of production.
Hi Rick - Thanks for your reply but I guess I didn't make myself clear with my question. The 46 barrels/day is what I was paid for (sold). The average was calculated from the first three months of oil that was sold and therefore paid to me as a royalty owner. Sorry for the confusion.
It is very possible that the well is pooled with others (adjacent plots), so that your minerals represent a specific percentage (half, a third, or whatever) of total production, therefore you would be receiving a royalty percentage of say, for example, 1/3 of total production. This is very common, but you should look carefully at the lease and division order. They company should be able to explain all this.