Malone Petroleum Consulting



Accounts Receivable Collections in the O&G Industry Take Research

Accounts Receivable

Accounts receivables are considered by most to be a simple collection of past due amounts. Nothing could be further from the truth. First, the joint interest billing department does not have the necessary time to camp on this monthly expanding problem. The reasons most Non-Operators have not paid because: 1) They cannot get the time of day from the operator's overworked staff. 2) There is an issue they would like to resolve first so they can pay their joint interest billing. 3) The receivable is so old that they have given up on it. 4) The Non-Operator has moved and the Joint Interest billings are returned to the Operator. 5) The Non-Operator is trying to resolve this to prevent a lawsuit but nobody will return their phone call. 6) They are not exactly happy with the Operator. Your absolute, legal right to collect those old, forgotten receivables is expiring on a monthly basis - which can be hundreds of thousands or millions of dollars in money down the never-ending, swirling drain. As a matter of principle or you might need that lost money some day, you might consider using our gentle, highly-experienced help instead of using a collection agency - Non-Operators are totally insulted when you mindlessly take this avenue and any remaining goodwill goes out the door. This is critical to your reputation and valuable goodwill. Since your Non-Operators have feelings and are real conscientious people, they impatiently want to get their unpaid balance resolved and permanently buried. Many times, a simple phone call by your company does NOT take care of this since you will probably have to march down to your very busy and overworked Land department and copy the necessary documents from the files - if they are not checked out or are missing. Therefore, our responsibility is to be your Ambassador and make your Non-Operators happy by handling and resolving these issues that you have that is destroying your relationship and cannot be easily resolved.

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