As a working interest royalty owner of part of the Yates Field in Texas, I joined to learn. I’ve only owned my interest for about 5 years and although have tried to get information from the company managing this field, and have even visited the field itself, I am still very uninformed about what I own and how I should deal with it. I look forward to soaking up any expertise represented here. Thank you for allowing me to join.
Dear Mr. Smith,
Owning a WI is much different in accounting treatment as opposed to a simple royalty interest. I feel pretty sure that by this time, your accountant has told you the various numbers that you need to capture from your joint interest billings.
If you have to pay royalties or overriding royalties, that adds another layer of accounting and obligations.
Last that I heard, Kinder Morgan is the successor operator from Marathon and there may be as much as another billion barrels or so of recoverable reserves.
The most famous well in the Yates field is the very famous Yates 30A, which as far as I know, still owns the words record of flow rate - over 200k bbl per day.
Thank you for your reply! Yes, KM is the operator of most of my WI, although BOA does handle another part of the field for me through a trust. Not sure why that was set up that way, but I just continued it, as it seemed best.
I have no clue what wells I own,etc. From the paperwork I receive there appears to be about 700 working wells included in my KM reports.
I must admit, I have considered selling these interests.
I look forward to learning more from this forum.
S.
Hi Buddy, I have several working interest wells and my accountant has never mentioned anything about capturing figures off the jibs. I always give the totals paid for the year. Can you tell me more about how we should be handling these interests. Thanks.
Buddy Cotten said:
Dear Mr. Smith,
Owning a WI is much different in accounting treatment as opposed to a simple royalty interest. I feel pretty sure that by this time, your accountant has told you the various numbers that you need to capture from your joint interest billings.
If you have to pay royalties or overriding royalties, that adds another layer of accounting and obligations.
Last that I heard, Kinder Morgan is the successor operator from Marathon and there may be as much as another billion barrels or so of recoverable reserves.
The most famous well in the Yates field is the very famous Yates 30A, which as far as I know, still owns the words record of flow rate - over 200k bbl per day.
Best,
Buddy Cotten
PLM-UT
Hi, Laura,
It makes a difference as to whether you can expense or capitalize the cost depending on whether the cost is intangible or tangible.
Mr. Smith, Hopefully there is a Geo reference for each property on your county Tax receipt. This would help you determine the location of wells and so forth. This info is required per Section 31.075 of the Texas Property Tax Code. Also, regarding the Yates Field I believe I’ve read several articles talking about Residual Oil Zones ( ROZ) - which basically means significant oil saturation in formations below the oil/water contact exists & can likely be produced by deepening wells & WAG or carbon dioxide floods. Google ROZ and Advanced Resouces Interenational (ARI) for articles. I’d say “Keep the wells!”. Presuming increased future production would be OK with you?
Regards,
Ralpr
S. Smith said:
Thank you for your reply! Yes, KM is the operator of most of my WI, although BOA does handle another part of the field for me through a trust. Not sure why that was set up that way, but I just continued it, as it seemed best.
I have no clue what wells I own,etc. From the paperwork I receive there appears to be about 700 working wells included in my KM reports.
I must admit, I have considered selling these interests.
I look forward to learning more from this forum.
S.
Mr. Smith
I would be interested in buying your working interest in the Yates Field, if you are interested in selling.
Laura Reagan
I do understand that KM is spending zillions to maintain and improve the wells at Yates Field. I've seen the expenses increase over the past few years in evidence of that. What I was trying to find out from them was an estimated future recovery figure, but wasn't able to get that info. If they plan to use some of the methods you mentioned, I am encouraged about long-term retaining of the interests.
Thank you for your input. Much appreciated.
Ralpr said:
Mr. Smith,
Hopefully there is a Geo reference for each property on your county
Tax receipt. This would help you determine the location of wells and so forth. This info is required per Section 31.075 of the Texas Property Tax Code. Also, regarding the Yates Field I believe I've read several articles talking about Residual Oil Zones ( ROZ) - which basically means significant oil saturation in formations below the oil/water contact exists & can likely be produced by deepening wells & WAG or carbon dioxide floods. Google ROZ and Advanced Resouces Interenational (ARI) for articles. I'd say "Keep the wells!". Presuming increased future production would be OK with you?
Regards,
Ralpr
S. Smith said:Thank you for your reply! Yes, KM is the operator of most of my WI, although BOA does handle another part of the field for me through a trust. Not sure why that was set up that way, but I just continued it, as it seemed best.
I have no clue what wells I own,etc. From the paperwork I receive there appears to be about 700 working wells included in my KM reports.
I must admit, I have considered selling these interests.
I look forward to learning more from this forum.
S.
You're most welcome! Please google "The American Oil & Gas Reporter, May 2011". There's an incredible article on ROZs and the Permian Basin Booming. It says we have the potential to recover as much oil & gas & NGLs as has been produced all told to date or, ~ 30 Billion bbls from the Permian Basin. Incremental efficiencies in sweeps can really add up! This is encouraging to my long-term interests, too!
Regards,
Ralpr
S. Smith said:
I do understand that KM is spending zillions to maintain and improve the wells at Yates Field. I've seen the expenses increase over the past few years in evidence of that. What I was trying to find out from them was an estimated future recovery figure, but wasn't able to get that info. If they plan to use some of the methods you mentioned, I am encouraged about long-term retaining of the interests.
Thank you for your input. Much appreciated.
Ralpr said:
Mr. Smith,
Hopefully there is a Geo reference for each property on your county
Tax receipt. This would help you determine the location of wells and so forth. This info is required per Section 31.075 of the Texas Property Tax Code. Also, regarding the Yates Field I believe I've read several articles talking about Residual Oil Zones ( ROZ) - which basically means significant oil saturation in formations below the oil/water contact exists & can likely be produced by deepening wells & WAG or carbon dioxide floods. Google ROZ and Advanced Resouces Interenational (ARI) for articles. I'd say "Keep the wells!". Presuming increased future production would be OK with you?
Regards,
Ralpr
S. Smith said:Thank you for your reply! Yes, KM is the operator of most of my WI, although BOA does handle another part of the field for me through a trust. Not sure why that was set up that way, but I just continued it, as it seemed best.
I have no clue what wells I own,etc. From the paperwork I receive there appears to be about 700 working wells included in my KM reports.
I must admit, I have considered selling these interests.
I look forward to learning more from this forum.
S.