Hello all, While perusing some docs I found that the TRRC site reports production of a well at one volume and the statement from the operator is something different. Before going to the Operator half cocked, I need to know if this is normal? Or what specific questions to ask about this, as it looks to being short changed $$$$ and have been for a while? I could see maybe a 10%-25% difference, but this is closer to 44%? Thank you for your insight and help on this. MK
Could be several things. First, always compare disposition volumes to your check detail as that is the quantity sold in a particular month. You can also see the reported sales volumes and revenues on the TX CONG website. Second, is your DOI for the well or for a tract within the unit? Example - If your DOI is 0.006 in a tract of 100 acres and the well is on 200 acres, then your DOI in well is 0.003. Some companies will pay on the tract DOI and therefore will allocate lower volumes to keep you from being overpaid. In the example, you will see 100% volume and sales for DOI of 0.003, but only 1/2 (50%) volume and sales for DOI of 0.006. The net numbers will be the same to you. Third, are there multiple wells being reported under the same RRC lease number and so the volumes and sales are allocated among the wells. You would need to add them all together to see if you are being properly paid. You should contact your oil company and ask questions.
@TennisDaze Thanks for that info, more for me to understand. You always amaze me with your knowledge and help . One thing, so I am straight on terms, DOI? I believe you are referring to my Division Order Interest? This is appears to be a stacked horizontal approx 1897ft of lateral in 114 acres of SW/4 of a section. Allocated wells of an ORRI if that helps. Again many thanks. MK
DOI is your royalty division of interest decimal. Do you know how your decimal was determined? Is it your decimal nterest within the 114 acres in the SW/4 - which would be a tract decimal? Is it based on the total productive wellbore length? Is the production reported on a multi-well level and then allocated back among the wells? There is no single answer without knowing all the details. Your best bet is to contact the oil company and ask for the information.
@TennisDaze , thank you , I have emailed oil company. mk
This topic was automatically closed after 90 days. New replies are no longer allowed.