What Happens After You Invest in an Oil Well?

The Investment Timeline

You've signed the subscription documents and wired your investment. Now what? The timeline from funding to first revenue check follows a predictable sequence, though the exact timing depends on permitting, rig availability, and weather.

Permitting and Site Preparation: 2-6 Weeks

Before the rig arrives, the operator files drilling permits with the Oklahoma Corporation Commission (or the relevant state agency). In Oklahoma, permits typically take 2-4 weeks. Simultaneously, the site is prepared: access road construction, leveling the pad, setting up the reserve pit, and rigging up surface equipment.

Drilling: 1-4 Weeks

Once the rig is on location, drilling begins. A conventional vertical well in Oklahoma takes 1-2 weeks to reach total depth, depending on formation depth. Horizontal wells take longer, typically 2-4 weeks for the vertical section plus lateral. BassEXP sends investors updates during drilling, including daily drilling reports showing progress, formation encounters, and any significant events.

Completion: 1-5 Weeks

After drilling, the completion crew takes over. This phase includes running casing, perforating the production zone, and stimulating the well (fracturing or acidizing, depending on the formation). Flowback and initial testing follow. The operator evaluates whether to set the well on production or, in some cases, makes a casing point election based on the geological results.

Connection and First Production

The well gets connected to gathering lines or a tank battery. First sales typically happen within 2-4 weeks of completion. Production data starts flowing, and the operator begins accounting for revenue allocation among working interest holders.

First Distribution: 60-120 Days After Funding

Most investors see their first revenue check within 60-120 days of funding, depending on how quickly the well moves through permitting, drilling, and completion. Revenue is distributed monthly based on your NRI share of production minus operating expenses and severance taxes.

Ongoing Communication

BassEXP provides monthly production statements showing volumes, prices, operating costs, and net revenue. K-1 tax documents are delivered annually by March 15. You'll also receive periodic updates on well performance, any workover activity, and field conditions that affect production.

The well continues producing for 15-30 years in many cases, with distributions declining as production follows the natural decline curve. But the depletion allowance keeps sheltering a portion of that revenue from tax for the entire producing life.