It appears that our family may own non-partcipating royalty rights in Marathon Oil well 1H in the Davila Graham unit in the Sugarkane field about 10 miles southwest of Kennedy. The API number is 42-255-32531. According to the Victoria Advocate, Marathon recently applied for the driling permit.
We are totally new to this, and would appreciate any insight that the Forum Members may have on the following items: typical time frame from permtting to completion of drilling / fracking; typical time frame from drilling / fracking to production; typical time frame from production to issuance of the distribution order (DO); typical time frame from issuance of the DO to first royalty payment.
Also, any insight to the well spacing or proration unit size for this well specifically, or for Marathon oil wells in the Sugarkane field in Karnes County in general, would be appreciated.
Welcome, First I've never had any business with firm you mention, so do not know their timing. If you are new and want well application information, check out the Railroad Commission. Try: https://webapps.rrc.state.tx.us
Next: under Query Application, click Drilling Permits Form W-1, App Query
Next screen RRD click Dist 02 then on right API No. type 255 32531
Under County drill down and click Karnes County
Go to bottom of page hit Submit
Click on Unit and a world of information concerning application. On bottom of page is plat you can click on and a P12 of who's in the pool. I am from Victoria with interest in Karnes County. I see your interest is south of Lenz and north of El Oso in a 662.63 unit. Good Luck
First of all, congradulations! You're in a great spot. I'd focus now on turning the 'it appears' to a 'we definately own...'
There are way too many factors to guess on any specific timeline if they haven't scratched the surface yet. I've watched Marathon drill half-dozen wells 'across the street' from my property in nearby Wilson county. It will take between 6mos and a year for 1st roy-pymt if they haven't done anything yet. Marathon is putting big-bucks into their endeavor, and they run a class act! Well spacing is already 'proven' at 80ac (for horizontals) in the area, and they're even targeting 50ac or 40ac. They put the first few in spaced out across the unit, then go back and fill in if the take is good. Access to pipelines to sell the gas is a huge factor (in timelines) - even thou gas is cheap now, the wells in this area are gas prolific, and will produce it a long time, so marathon is planning on grabbing every penny (from what I've seen). There is even more gas (rumored) down below at the 'Pearsal Shale' -so their plans are long-term. They've put in an enormous gas pipeline in our area, and were supposed to be a 'mainly oil' area - so they know something but aren't talking much.
Really appreciate your input. This was the first time I've ever been able to navigate the RRC site. Turns out there are two wells within 500 feet of each other. Thanks again.
Kenneth Wayne McElveen said:
Welcome, First I've never had any business with firm you mention, so do not know their timing. If you are new and want well application information, check out the Railroad Commission. Try: https://webapps.rrc.state.tx.us
Next: under Query Application, click Drilling Permits Form W-1, App Query
Next screen RRD click Dist 02 then on right API No. type 255 32531
Under County drill down and click Karnes County
Go to bottom of page hit Submit
Click on Unit and a world of information concerning application. On bottom of page is plat you can click on and a P12 of who's in the pool. I am from Victoria with interest in Karnes County. I see your interest is south of Lenz and north of El Oso in a 662.63 unit. Good Luck
Title curative process is underway - things look encouraging. Landman for Marathon has been very open and helpful.
It looks like the "unit" (which i think is the same thing as the proration unit) is 320 acres. However, since they have permits for two wells at the same site - 500' spacing between them - they seem to be effectively at a spacing of 160 acres per well.
Now that I can navigate the RRC site (thanks again to Mr. McElveen), I can track how many wells are being permitted / drilled at that site.
f oldoak said:
First of all, congradulations! You're in a great spot. I'd focus now on turning the 'it appears' to a 'we definately own...'
There are way too many factors to guess on any specific timeline if they haven't scratched the surface yet. I've watched Marathon drill half-dozen wells 'across the street' from my property in nearby Wilson county. It will take between 6mos and a year for 1st roy-pymt if they haven't done anything yet. Marathon is putting big-bucks into their endeavor, and they run a class act! Well spacing is already 'proven' at 80ac (for horizontals) in the area, and they're even targeting 50ac or 40ac. They put the first few in spaced out across the unit, then go back and fill in if the take is good. Access to pipelines to sell the gas is a huge factor (in timelines) - even thou gas is cheap now, the wells in this area are gas prolific, and will produce it a long time, so marathon is planning on grabbing every penny (from what I've seen). There is even more gas (rumored) down below at the 'Pearsal Shale' -so their plans are long-term. They've put in an enormous gas pipeline in our area, and were supposed to be a 'mainly oil' area - so they know something but aren't talking much.
You are welcome, glad to help. As it has been said. We are not born knowing this way of research!
BGS said:
Really appreciate your input. This was the first time I've ever been able to navigate the RRC site. Turns out there are two wells within 500 feet of each other. Thanks again.
Kenneth Wayne McElveen said:
Welcome, First I've never had any business with firm you mention, so do not know their timing. If you are new and want well application information, check out the Railroad Commission. Try: https://webapps.rrc.state.tx.us
Next: under Query Application, click Drilling Permits Form W-1, App Query
Next screen RRD click Dist 02 then on right API No. type 255 32531
Under County drill down and click Karnes County
Go to bottom of page hit Submit
Click on Unit and a world of information concerning application. On bottom of page is plat you can click on and a P12 of who's in the pool. I am from Victoria with interest in Karnes County. I see your interest is south of Lenz and north of El Oso in a 662.63 unit. Good Luck
Keep your fingers crossed and seek the Good Lord for his provisions. Your Oil company is moving quickly. We had a pad built back in January, just south of Karnes City, drilling northernly, but no drilling rig yet. We also have ajoining neibor to our North with rig that started drilling first part of June, in a southern direction that we should be pooled in.