No Apache Royalty Payments-June, July

Hello! Anyone else missing royalty payments from Apache for June and July for the Zelda-Link wells, 237-238, Reeves County? I see in some other posts that wells can be shut in because of new drilling. I have sent an email to Owner Relations. I don’t have a lot of confidence in that. I have had very little correspondence from Apache since they bought Callon.

Thanks Betsy

Hi Betsy. I have several clients with interest in these wells. We did a quick check this month and after reviewing the Texas Railroad Commission data, here’s what we concluded:

  1. Most Likely Explanation: Oil Not Picked Up Yet

Both wells showed low production in April and May 2025. The RRC reports some oil was produced, but no oil disposition — meaning no oil has been sold or transported off the lease. That strongly suggests the oil is being stored on site and hasn’t yet been hauled off by truck. These wells likely aren’t on pipeline, and when volumes are low, operators often wait until there’s enough oil to justify sending a truck. Until that happens, no sale = no royalties.

I am attaching a screenshot of what production and disposition has been for the 1H well in the west unit>

  1. Declining Wells

These wells are nearing the end of their productive life. Each has produced about 180,000 barrels total — on the low side for Reeves County horizontals — and recent production has been minimal. That also supports the theory that sales (and thus payments) will be intermittent.

  1. Other Possibilities
  • Minor downtime or maintenance
  • Administrative delay in measurement or reporting
  • Sales not yet processed (Apache pays ~30 days after the sale, not the production)

I’d keep an eye on upcoming months to see if disposition appears in June or July reports. If so, royalty payments should follow. Otherwise, follow up with Apache Owner Relations or consider filing a production inquiry with the RRC.

Hope this helps clarify the situation.

Best, Pablo

Hi, Pablo, thank you for your response.

I had a response from Owner Relations at Apache:

“Per the Land Negotiator Advisor, he has said these wells are set to be Plugged and Abandoned.”

I find this interesting because I got a letter a couple of weeks ago from a company offering over a $100,000 for the two Zeldas!

Thanks Betsy