Here are a few examples of some of our Success Stories and how we can help:
A Texas based community bank was receiving an average of 800 royalty checks per month. They were depositing them in the Trust Department DDA and entering high level transactions on their trust accounting system. Their challenge was that they were having difficulty managing their Assets because they had to cobble together run statements to generate any meaningful reporting. OGTS helped them by establishing all of their data on VISION-OG using our Back Office Managed service level, including Payors, Owner Numbers, Wells, etc. Once this data was in VISION-OG, we could then begin processing the check details which allows for much more detailed and useful reporting. As part of this project, we also implemented a document management solution to help keep all of the run statement detail organized. We partnered with an industry expert vendor and developed a scanning and indexing solution that allows for efficient research of any run statement received.
One of our existing Full Managed service level Clients came to us when they received a Lease Offer for some unleased acreage in the Permian Basin that is owned by one of the Trusts they serve as Trustee for. The original offer included a Lease Bonus of $750,000 and our Client thought that seemed fair. However, they did not have the tools and resources to compare and analyze a more competitive amount. Using our knowledge and expertise, we ultimately negotiated a Lease Bonus of $3,000,000 for the Client, among other favorable terms. The Operator on the Lease has since successfully completed 8 new Wells and the Client is benefiting from us being involved in the negotiation.
One of our existing Full Managed Trust Department Clients has a Client who is actively buying new mineral interests. The end Client had very specific data points that he wanted to track with regard to his Ventures. For example, he wanted to track his Return On Investment (ROI) and to forecast, based on income actually received, when his “break even” would be for each Venture. Using VISION-OG and some custom report designs, we successfully developed a monthly report that gives the Client everything he is looking for. In addition to the Accounting reports, we also developed ShapeFiles for all of the Assets and integrated them into a map that shows all State reported Well data associated with the Wells located within each Venture.
A Mid-Western Bank Trust Department had no experience with Oil & Gas. They were presented with an Opportunity to serve as Trustee for a large family. The patriarch of the family had acquired some Illinois based Working Interests and these would be included in the relationship if the Bank decided to serve as Trustee. The Bank came to us and asked if we could review these Working Interests to determine if there were any risks involved that may cause them to decline the relationship. After providing us with title documents, run statements and JIB’s, we were able to analyze the nature and performance of the Working Interests. Based on our analysis, the Bank accepted the relationship and then asked if we could continue to assist by managing the Oil & Gas Assets. They are now a Full Managed service level Client.
One of our Back Office Clients became Trustee for a large Account. We were able to establish over 6,000 Assets and 17,000 Wells in VISION-OG well within the mutually agreed upon project scope deadlines. We were able to accomplish this partially because of the flexibility and Import capabilities of VISION-OG. Another key factor was our careful and realistic planning based on our extensive knowledge of the data elements involved. We organized the project by State, so our Client had full transparency throughout the project via direct access to VISION-OG. Breaking it up into logical smaller pieces allowed us to communicate with them as we reached milestones to ensure that the data was being brought in accurately and timely. Currently, we are processing on average 500 royalty checks per month for this Client.