Case Study – Special Project For Suspended Funds

Tracked Down Owners, Updated Title Work, And Paid Out Suspended Funds

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Client

Our client is a mid-size, midstream oil and gas company.

Background
There are times when we are asked to do “one-off” tasks for potential clients. Usually, this happens when an oil and gas purchaser or operator is presented with a challenge they are not able to perform internally (because of lack of knowledge, staffing issues, inadequate software, or other issues).

Challenge
Our client, is a mid-size, midstream oil and gas company that was being acquired by another company. Unfortunately, they had more than $250,000 in old, suspended funds, which needed to be disbursed to the proper owners. Our client did not have the ability to set up ownership or update title work, which meant that they could not release the suspended funds to the proper owners.

Solution
We stepped in and took the burden off their hands. Working side-by-side with an attorney who drafted a new Title Opinion, we were able to set up ownership and start working the title issues. We guided folks who had been in suspense for years (due to a death in the family) to convey the interest to the proper heirs. We found all of the “unlocatable” owners who had not been paid because of bad addresses. And we sent division orders and W-9s to all of the owners with clean titles, so that payment could be released.

Outcomes
By outsourcing to ExTex, our client was able to:

• catch up and pay out all suspended funds
• reduce their exposure
• take advantage of ExTex’s one-and-done approach

Like other clients that we have helped in the past, this client did not need us in the beginning or in the future, but we fulfilled a need in the middle that helped them complete their goals.

For more information about ExTex, or to talk about how we can help your company, please call (303) 463-8799 or fill out our contact form.

ExTex Division Order Services, LLC is located in the Denver metro area (in Golden, Colorado), and we provide back office outsourcing services for oil and gas companies across the U.S. and Canada.

Read Other ExTex Case Studies
ExTex Replaced A Division Order In-House Team
ExTex Gave An Oil And Gas Operator More Control And Flexibility
ExTex Delivered Ground-Up Services For A Startup Oil And Gas Purchaser
ExTex Provided Support When An Oil And Gas Operator Acquired A Competitor