Starting to get a little bit impatient and need some reassurance. We have a lease with Noble Energy and are currently receiving royalty checks for 2 wells. We have had permits approved for 9 more. The permits were approved all the way back on June 6, 2013. We have been anxiously awaiting spud dates with no success. I realize Noble is very busy in the Wells Ranch and East Pony areas. I guess my question is about the 9 permits. Needing knowledge from others about how often permits are acquired and then never drilled. My rights are in 7n 64w Section 22 (North Half). ANY information or comments at all would be greatly appreciated.
Hi Tammy,
You can go to the COGCC website and look at approved permits and see when those permits expire. Noble has "proved" up the acreage, it is now held by production and subsequent drilling may not happen for years. If the first two wells aren't great they may or may not drill additional wells. It's all based on economics, the wells must be economic to continue drilling. Noble does have an implied covenant to develop your lease but if they can prove it isn't economic to continue drilling you cannot force them to drill more wells. Hopefully that helps. Congrats on becoming a royalty owner! We are the only country in the world private citizens can own their minerals.
Michelle Smith
NARO Colorado President