Karnes County Production Timelines

I apologize up front and hope this does not violate any forum rules, but I posted this in the Karnes County section almost 2 months ago and didn’t hear anything back. Am hoping maybe someone in thus general forum can give me guidance.

I apologize if this has been addressed, and realize also there may be no set answer. My wife and I sold our property about 10 years ago, but did manage to thankfully retain 50% of the royalty rights to the minerals. The property falls in the oil/gas condensate eindow of the Eagle-Ford Shale play. As I understand it, we only get money if an oil/gas well produces. That being said, I was wondering if there is a general timeline to the process. The land where our acreage was located has been pooled (approx 99 acres) and two wells have approved permits posted on the RRC site as of 8/15 and 8/16 respectively. Is there a general timeline for the process that would give us an idea of how soon to expect some, if any royalties? From what I have found so far, I am of the understanding that once the wells are drilled and pressure tested you are still looking at 2-3 months before they produce. What I don’t know the timeline from the permit approval to the time they actual send out the drillers to start working on drilling the well.

Thanks Jason

Jason, if you retained the 50% , I presume you leased your rights and received a bonus ? As for a timeline, I believe that permits are good for a year and sometimes are allowed to expire or are renewed. Only so many wells can be drilled and completed each year and the operators must go to where they most urgently need to put in a well to hold the property so the operator won't have to lease it again. I presumed that you leased, but your saying that you realize that you won't receive money without production makes me wonder. I would be seeking a lease if you are not leased, at least in the state of TX.

RW - thank you for the quick response.

I forget the technical word they used, but we have a nonparticipating ownership. We are able to see the lease that was signed and information related to it, but don’t sign or have any say so in what happens. We only get royalties if the wells produce. The company that leased it has been super nice to us when they have communicated with us, but that is rare since really their obligation is to the person on the lease. I know they are drilling wells as quickly as possible and unit sizes continue to be reduced due to the large volume of oil here, but again no one seems to be able give us much of a timeline.

Jason, I don't know about the RRC but in Oklahoma they post on the occ website when drilling begins, it's called a Spud report. If they started drilling today it might be next summer before you are paid any royalties.

Jason, I just got this newsletter, you may find it educational.



Thank you for the information. I will look through the newsletter!