All things pertaining to leasing, drilling and production in La Salle County.
Latest Activity: Mar 17, 2021
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My ex owned acreage in La Salle and as a Reservoir Engineer who has bought and sold millions of dollars worth of oil and gas properties, I am curious and interested. I am an unbiased observer.
Being exceedingly naive on this - Can anyone give me an estimate on the timeline between initial leasing - to spud date - to production - to royalty receipts ? Thank You..
Response to Paul - it all depends on the operator. Getting leased is no guarantee of getting drilled. And the operator can take up to the full term of the lease (3 to 5 years) to spud a well.
If a well is spud (and I am assuming you are talking about an Eagle Ford well), a reasonable estimate to the receipt of the first royalty check is 6 to 8 months.
Thank You Mark - Yes - Eagle Ford ...
One other question - Once royalties begin, are they usually monthly or less frequent ?
Nothing new on the Naylor Jones Unit 6 wells - I would expect to see some completion forms in 1-2 months and possibly some post frac flow back production rates on Tx RRC next month (when May data posts).
Keep your eyes on the Tx RRC site for any updates on these wells.
Royalty checks for O&G production will be sent out monthly like clock work. They only get less frequent if the total amount of your check drops below a certain amount (e.g. a few dollars a month) - in those cases, the operator waits several months before sending a single check for the entire period.
Spud = the start of drilling a well (which takes 2-3 weeks for a typical Eagle Ford well).
Suggest you look through the discussions in this Forum and use the "search" options in it to help with your education on O&G issues. There is a primer here about using Tx RRC site too.