Spud Notification


#1

Is there a way to check the spud notification date? Is this normally a solid date to go off of? How many days after the spud date do royalties get sent out? Thanks for your time. Sorry for my ignorance, but all input is appreciated!


#2

The TXRRC should have information on the spud date of the well. There are several points to address with your question.
The first is the assumption that the well was commercially viable. If a well is drilled, but due to numerous possible scenarios, it is never completed and brought online, no royalties would ever be paid on the well because it never produced in paying quantities. Then, it depends on the volume of product produced and the royalty you own. If your royalty is so small that it takes 10 months to reach $100 payment, you’ll likely only get 1 check per year. Assuming neither of these are the case, and you own a decent percentage of a high producing unit, you will generally see royalty checks start coming in somewhere around 90 days after production begins unless your lease agreement states otherwise. Coincidentally, the TXRRC production records lag behind by about the same time frame. So if the well was drilled 3 months ago, you would likely see a check and the RRC reporting production numbers within the next 30 days.