This well , Tat State 14X-36B, has been operating for over 1 year in Dunn County but XTO says they are still not ready to send out division orders because of some type of title problem on their end. I am not sure if I am getting straight answers from them or not. Does anyone know whats going on with this well?
John, in my opinion they should pay anyone who has marketable title and I hope yours is because XTO would be racking up considerable interest. It's a good well, 13 months production as of April 131,383 barrels and still producing 7073 in April. Only 30k barrels produced in the last 5 months so XTO would owe interest on 100k + barrels. 1.5% on production payment only 1 month past due, 3% on 2 months past due, 4.5% on 3 months past due and so on. The state give the operator 150 days after first sales to make payment and the 150 days of missed payments carries no interest penalty but it looks like they owe on at least 9 months worth right now. 13.5% on the first months production.
If I was sure of my title I might be quiet and let it ride, 1.5% a month is not a bad return on loaning them money in my opinion.