Replies to This Discussion

Permalink Reply by jffree1 on May 13, 2011 at 3:15

There doesn't seem to be an average.  Some operators have contracts for dedicated frack crews which they keep scheduled to complete their wells. Other operators, who may not be drilling enough wells to justify that sort of arrangement, just get in line and wait their turn for a pumping crew.  

It also depends on proximity of the well to a pipeline and how long they have to wait for a gathering line to be laid to the well. 

 

If you have a particular operator in mind we might be able to tell you something more specific to that company based on past experience in a given area.

Permalink Reply by Bob Cratchet on May 13, 2011 at 14:32

The operator is EOG and the well is API No. 347-33217.  It's in the Melrose area NW or Chireno

Permalink Reply by jffree1 on May 13, 2011 at 16:42

The rig just left last week so you probably have at least a 2-3 month wait but it could be longer.  Several people look at production and completions so someone will see it when they start turning in reports.  Check back once in awhile and just ask.  There's always someone around who will look it up for you.

 

Permalink Reply by Bob Cratchet on May 17, 2011 at 17:34

2-3 months How long after that until I start getting royalty payments.    Let's say I get lucky and it takes 60 days to complete the well.  I hear payments are usually two months behind the production month???

Permalink Reply by Headly on May 18, 2011 at 3:28

I own minerals in a Unit near you in the Mora survey known as the Kurth Investments Gas Unit.  EOG has been selling gas since November '10 and I have yet to receive even a Division Order.  EOG reports that they are working on it - but still no royaltys yet.  Hope yours goes faster than mine.

Permalink Reply by jffree1 on May 18, 2011 at 3:48

Headly, EOG began reporting production from Kurth Investments #1H in January this year.  They didn't report anything from the well in 2010.  If you look at #14 on the attached completion report, the well was not completed until January 7. So, if you go by the rule of 120 days from the end of the month of first production for first royalty payment, they are not late... yet.

Attachments:

• 347-33182 G-1.pdf, 28 KB

Permalink Reply by Headly on May 18, 2011 at 5:28

jf - this sets the record straight and I greatly appreciate the info.  At 13.3 mm hopefully the check will be worth waiting for.  Thanks again!

Permalink Reply by Bob Cratchet on July 11, 2011 at 3:15

API No. 347-33217  Looks like they have completed it.  It was finished around the first of July.  As discussed earlier, I just wanted to confirm that the average is 120 days till pay day.  Of course, I know it could take longer, but is that a good estimate?

Permalink Reply by jffree1 on July 11, 2011 at 4:35

Bob, that is the rule but it also says they can take longer, and pay interest on the royalties due, if there are title issues to be resolved.  You just have to hope there are no big snags in the title review but in East Texas that is a much more likely scenario than not.

Permalink Reply by Bob Cratchet on July 11, 2011 at 4:58

The minerals went from my grandfather to me and he bought it in the 1950's.  I think there were only three or four names to run when they check the title.  So the title work should be pretty easy.

Permalink Reply by jffree1 on July 11, 2011 at 6:31

Let's hope you are correct.

Permalink Reply by Bob Cratchet on July 11, 2011 at 3:16

Headly..........any luck yet??