I leased minerals to OXY in September 2023 in the NitroFed. To be specific, Township 35 North, Range 69 West, 6th P.M. I was told in November 2023 that it was spud. Any updates on when royalties might be coming? I appreciate your help.
Not sure in WY ? Here in Texas, it takes about 180 days for the first check after production starts. Expect your first check to reflect multiple months. Then it is once a month. MK
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Check this website, find your operator and look for production info, etc, can also check via township and range
thank you for your help. I am having some difficulty with the system.
This is a dumb question but, can the operator be different than the co that bought the minerals?
Do you have section # ?
Yes, there can be many companies that are working interest owners in a well. But only one official operator. You may have leased (or sold to) with one company as an agent for one of the working interest owners.
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Depending upon the type of well, I usually estimate about a year from spud to bank. If it is one horizontal well, then it takes about four-five months to drill, then five or six months to do the title work. So about 10-12 months. If they are drilling quite a few wells in the same section, then it may take longer as they generally drill them all first and then frac them all at the end to save money and time.
Since gas prices are so low right now, some companies are choosing to drill wells that may be mostly gas but not completing them for a while until gas prices are better. These are called DUCs (pronouced “ducks”) which stands for Drilled UnCompleted.
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Martha, Thank you for your expertise. I appreciate it
And if the well is a wildcat and a pipeline must be built, it could take even longer.
Martha, my family (not necessarily me) has been in the oil business for decades, but I swear I’m learning something new from you every day…
Our family has been in the biz over a hundred years and I still learn something new all the time! Forums like this, the National Association of Royalty Owners and various technical conventions are giving info on new things we need to know about.