We just found out that Sundance has started drilling on Section 14, township 16north range 4 West Logan and also on Section 26, 16 north, 4west Logan we have interest in both. How long does it take to drill a well and when do they usually send out your first check? Thanks Vonda
You'll be looking at the better part of a year to receive your first check unless you have provisions in your lease that say otherwise.
Vonda:
It is hard to predict the exact timing for drilling and completing a well. There are many variable factors such as the depths involved, etc. and when the drilling is completed, the availability of fracking equipment enters the picture. If things go smoothly, I would guess approximately 8 months but I know many circumstances where the drilling was completed but the fracking services were backlogged two to three months. Good luck on your new wells.
I just received royalties on a well drilled 2 years ago, they had to wait on pipeline and like the fracing Charles mentioned can also be backlogged.
Just remember though...that if you are not paid within 6 months of first production, they owe you statutory interest on the overdue amount. We have just been paid on some wells that were in production for *3 years* before we were paid. We had to *request* the interest; they don't just send it automatically.