How long from frac to royalty payments?

I think PHawk just hit the depth they were aiming for on our well and plan on frac'ing soon. Does anyone have any idea about how long it will take to see a royalty payment once they've started producing (assuming it does produce)? Thanks. Don't want to sound greedy, just excited....Thanks.

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Permalink Reply by FXEF on February 22, 2011 at 12:36

Frank,

 

Best case scenario would be 2 months after production is turned to sales. However, from looking at some of the post here on GHS it may take several months before you start receiving royalty payments. I think a lot depends on the operator. In your case, Petrohawk royalty owners probably could help with the time frame.

Permalink Reply by Skip Peel - Mineral Consultant on February 22, 2011 at 12:41
Depends to some very significant extent on title work.  If the number of mineral interests are relatively small in number and have clean titles, it could be 2 months.  That would not be the average case.  And keep in mind that the professionals who run title and provide title opinions have a heavy work load as you might imagine.  The process could easily take 60 or more days.  And it could take that long for those professionals to begin the process.
Permalink Reply by Ringgold Redskin on February 22, 2011 at 12:39
Plan on Six months.
Permalink Reply by W P on February 23, 2011 at 7:51

 

 

What if you have a 90 or 120 days payment clause in your lease?

Permalink Reply by FXEF on February 23, 2011 at 9:28
Hopefully the operator will abide by the terms of the lease.
Permalink Reply by Missy on February 24, 2011 at 6:31
It only took one month from date of First Sales for me to receive DO.
Permalink Reply by Johnnie Joe on February 25, 2011 at 11:16
I know a few people in San Augustine that had their first production in June 2010 and have yet to see a division order or payment.  The well was then turned off and then back on with another in Sept. 2010 and have since together flowed over 500MMCF.  6+ months and still nothing.  Something is wrong with that.

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