Our family owns royalties in Howard County. Operators are drilling horizontal wells and we are trying to estimate our royalties as these wells begin production. We know the formula to calculate our royalties, but finding average production for horizontal wells in Howard County has evaded us. Can an expert give us the average historical production for the 1st, 2nd and 3rd years of a horizontal well in Howard County? The wells are 10,000 deep and 2 miles long. We have been told production that 42 to 45% of the total production of a horizontal well is produced the 1st year. Thank you
You would need to know which reservoir and which operator as those two additional items are very important. The production would need to be matched to a price deck such as NYMEX to get a good feel for the area.
I would say “where in Howard” is the most important factor. I can give you an average for all of Howard County pretty easily but its more relevant if its a smaller search area. For example, if you are on the far NE edge of Howard its a lot different from the far SW edge
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The field is Spraberry (Trend Area) and the operator is Crownquest for one of the wells. I tried to attach a jpg of one of the RRC permits. Thank you
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I didn’t want to reinvent wheel. Here was a hyperbolic decline estimate for that area on Martin/Howard border from a year ago. 2 mile long wells. First year volumes were about 1/3 of the 40 year volume of the well. 165,000 bo. 2nd year estimates were 60,000 bo and 3rd year estimates were 40,000 bo.
“Spraberry” in this case (of the permit) means anything in the Spraberry or vertically adjacent Wolfcamp which is every well being drilled around here.
Rig on location, should be good wells. Good luck.
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