I’ve leased minerals at the 159 / 103 / sect. 5&6 where there is apparently an ‘Amber 3119-4bhs’ multi-pad oil well of some kind in the works by KODA nearby. On March 9th a permit was approved though I’d imagine multiple permits could be necessary to actually start drilling.
Could anyone give more info on what a realistic window could be to eventually see royalties? I’d imagine with prices the way they are, the sooner the better for everyone. Thank you.
It depends upon how many wells are being drilled, the availability of frac crews and weather. In general, it can take three-five months to drill and complete a horizontal well-longer if you have multiple wells being drilled from the same pad. Then it takes about four-five months to do all the title work for the division orders-longer if multiple sections as there are more mineral owners. Then about another month to get the pay deck set up and the checks out. Operators cut checks on a certain day of the month. So I put a tickler alert on my calendar for a year after spud to start looking for royalties. Just because a permit is approved does not mean it will be drilled especially soon as many have a six-16 month time frame allowed. Weather can slow things down in the northern states, so may be a few more months.
KODA has a permit for one well in that 8-section spacing unit. My guess is that it will not be drilled this year. KODA is running one rig right now, and they have approximately 100 open drilling permits. Several of these are multi-pad units of 4-5 wells.
They have multiple permits running West along the county line there. May I ask, how soon is your lease up? If they are short time, they might start work sooner so they don’t lose the leases.
That could also explain some of their permits with one pad and 4 wells drilling into 4 different spacing units–they could hold (through production) 16 sections with one pad (using 4 mile laterals). Then they could come back and drill more wells at their leisure.
Five year leases were signed in the summer of ‘25, so more than four years left on the leases.
We are nearby in Williams county 159n103w sections 11 and 12. Our families have leases with both Koda and Phoenix. Interesting developments.