Noob post, looking for basic info … when might Neyland MMM 1H begin production? When might royalty/pool owners be contacted for payments? When might payments begin? Thanks ~
For Comstock’s first two Leon County wells, the JG Dinkins and the CW Lanier, the date of first production was about 4.5 months after the spud date. The spud date for the Neyland MMM was 8/29/2023, so the expected date of first production would be about mid-January 2024. Any January production would probably be reported in the March 2024 Texas RRC production reports.
Comstock’s RT Glass well was spud on 7/6/2023, so first production was expected late November/early December. However, no production was reported for November and the December production report has not been filed yet.
Maybe someone else can advise you regarding when first royalty payment might be expected.
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BTW, have you receive a DO?
thank you for the info ~
i don’t know what a ‘do’ is, but there has been a steady stream of solicitations for about a year now ~
DO is a division order that is issued by the operator setting forth what your decimal interest is in the producing unit. Payments to royalty owners usually begin about 120-180 days after first production. The first check will be for several months and then each subsequent check will usually be only 1 months worth of revenue.
terrific information, thank you very much!
Hello Alan,
The RRC production reports are typically 3 months behind so if there’s no press release regarding IP rates, the only other thing I can think of is to listen to the Comstock quarterly earnings report, scheduled for Feb 12, during which the latest IP rates are usually announced and discussed thoroughly. Links to the quarterly reports along with transcripts from past reports can be found on the Comstock website. Hope you find what you’re looking for. – Regards, Phil
Alan, the date for earnings was off. Make that Feb 14 – https://investors.comstockresources.com/events/event-details/q4-2023-comstock-resources-inc-earnings-conference-call
According to the conference call, the Glass well is one of several that will be turned to sales by the end of the 1Q24. Maybe we’ll get some initial production rates announced.
Lessor’s should have language in their leases that stipulate that payments must begin within 3 months of the initial production. I have in my leases that problems with title from other owners in the unit do not effect timely payments to my interest. After all if you are going to spend $25,000,000 drilling a well you should have already had the drillsite title completed!
Your lease language of “three months after first production” could possibly contradict with statutory language for required payment times after first sales. Some states are 120 days and some are 180 days. You cannot be paid unless there are sales and you have clear title which enables you to receive royalties. It can take four-six months for the Division Order title opinions to be researched. Those title opinions are different than the leasing or drill site title opinions and they are not done until a well is completed. It can also take months to build and hook up a gas gathering line it if is not built yet.
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Today’s info from Comstock’s 4th Quarter report & call re Neyland. Also said re this one, “… still in testing and cleanup process…” We have still not received a Division Order tho. “Since its last operational update in November, Comstock has turned an additional 22 (16.5 net) operated Haynesville/Bossier shale wells to sales. These wells had initial daily production rates that averaged 24 MMcf per day. The completed lateral length of these wells averaged 11,966 feet. Included in the wells turned to sales since the last operational update was the eighth successful Western Haynesville well – the Neyland MMM #1, which was drilled to a total vertical depth of 16,752 feet with a 10,438 foot completed lateral. The well is currently producing 31 MMcf per day and has not reached its maximum initial production rate.”
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Respectfully I do not agree with this. If a company lease has stipulations about when royalties are to be paid they have to honor that especially if the title is good and the lessors owns 100$ of the mineral rights. I stated “Initial production”.
MO5- $100 of mineral rights? How many acres does that represent?
Most people can understand a simple typo! % not $. They are side by side on the key board. Old fingers sometimes don’t work correctly, but I guess you would not understand that!
LOL! Most people proof read before hitting “Post this Reply”! Mrs. Legako taught our typing class in 1972.
Surely spell check will catch the errors!! NOT!