The oil and gas industry is becoming a competitive and expensive ecosystem. In this time, it's crucial to know exactly where your money is going in a joint operating agreement.
Taking the steps to verify where your money is being spent and whether it is being spent appropriately within joint operating agreements (JOA) is well worth your while. Coding errors with budget spending, such as cost overcharges, or with licenses often occur. These issues can result in significant losses if they’re not thoroughly investigated. If you are a non-operator, conducting a JIA will let you verify costs charged to you and resolve errors. This could result in you potentially recovering hundreds of thousands, if not millions of dollars.
It may sound like conducting a joint interest audit is the obvious step forward to keeping your assets organized and having a deeper understanding of where your money is going. However, such a thorough investigation does not come cheap.
One reason why businesses do not choose to perform a JIA is because of the audit’s projected cost. JIAs require a lot of capital, and the cost might seem daunting or not worth the time investment. However, recovered assets usually are worth far beyond the cost of the audit itself. If you have any suspicion of coding errors or bills inappropriately charged to you within the agreement, run a JIA. The cost of a joint interest audit is money well-spent for what you’ll receive in return.
Running an audit is also exceedingly difficult without a dedicated joint interest accounting team that can navigate through COPAS standards and regulations. And that's in addition to the dozens of agreements that lay the groundwork for joint ventures. This is where our back office at PetroLedger can come in. We have over 30 years of experience conducting JIAs for our clients. Our JIB team is well-equipped to tackle even the most intricate JOAs.
If you are concerned that your money may not be allocated correctly or that you may be missing out on thousands or potentially millions of dollars, PetroLedger can perform a joint interest audit on your behalf and help set your money back on the right path. Interested in conducting a JIA? Call our team or request a call!
Lauren, one of our youngest team members, comes to PetroLedger shortly after obtaining her Digital Media Innovation degree from Texas State University. Armed with knowledge of digital and social media trends, Lauren brings a fresh perspective to PetroLedger’s online identity and ensures that our company reaches new clients.
The journey from old to new oil and gas software can be an arduous one. On top of the complications that can arise during the data conversion process, many companies come to realize post-conversion that their new software may not be as good of a fit as they believed. But data conversions are costly, time-consuming projects; you really want to get these right the first time. With over 25 years of experience migrating client data, we’ll be there to help you make the decision that’s best for your business, whether your data comes from industry-standard applications, QuickBooks, legacy software, or any other unsupported systems. Our scoping process is thorough, and we’ll recommend the application we think is the best for you after some conversation about your needs. But before you decide to pull the trigger on a data conversion, here are three important questions your company should consider.
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An inaccurate division order can spell a lot of trouble for all parties involved. Mispayments are not always detected expeditiously, and they can often create practical and legal challenges if they are not resolved quickly. However, the unfortunate reality for operators is that, without thorough oversight, inaccuracies are inevitable, especially when you factor in varying division order laws from state to state. These mispayments are usually caused by simple human error: miscalculations, typos, system errors, ownership analysis errors, and so on.
Our vision at PetroLedger is to be the partner of choice within the oil and gas industry for outsourced accounting and transaction services by employing the best-in-class people and processes across multiple technology platforms. Our most experienced and versatile staff resides in our Professional Services department. If you ask any of our staff, they will say it’s very rewarding to see the before and after version of their books. The PetroLedger team is a set of superheroes that transform and correct your data to better serve your organization.