Recently received significant offers for my royalty interest in Section 35, Township 9 North, Range 12 West. Anybody else get offers? Any activity there anticipating increased production?
So did I. And as Skip says, there are two wells planned. I received the legal notice for the wells early last fall.
SONRIS reports three: two in 35-9-12 and one in 2-8-12. Was a bit caught off guard with the offers, as my monthly royalty payments have been relatively low in the past year. Being a novice in these things, I was ALMOST led to accept, particularly the last one. Skip, generally how long does it take to see production (if any) after permitting?
The better question would be how long after the well is spud (begins drilling) will mineral lessors in the unit(s) begin to receive royalty payments for the new production. I'd have to count how many live permits are in front of these, look at how many rigs GEPH is running, and a few other things and then it would still be a WAG. If there are no mechanical problems and the well is drilled and completed in a timely manner, it could take about 90 days from spud to first production. After that, another two to three months for the first royalty payment. Permits don't always get drilled. Sometimes they expire. If these permits are drilled then I'd guess somewhere in the five to six month range from spud to first royalty.
Thank you, sir! I believe current payments are a couple of months behind actual production.
Yep, two months.
North Sabine. 3 to 4 miles approximately due west of Belmount.