I have been receiving 20 to 25 k last few months. This months checks were released and mine was 6k. This is a major dip. Any idea what happend to cause a 15k dip for the month of August. ?? Maybe time to look at saleing.
There can be several reasons for a dip. The first is natural decline of horizontal wells. They come on strong, but drop very quickly. However, after the first few years, the decline changes to a much shallower slope and the wells can last for decades. The second is a drop in prices. Gas has been hit particularly hard this summer. Hopefully, will pick up as colder weather comes in the fall and winter. Third, if they are hydraulic fracturing in wells nearby to you, your wells may be shut in for safety. See if the production volumes pick up in a month or so.
If you sell, you will lose those royalties forever and any potential royalties from further drilling. Find out what is going on in your area, what potential for future drilling may be and figure what your capital gains tax from a sale might be. Minerals may fit into a larger investment strategy.
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Thank you. I emailed the drilling analyst. He said they are running a check on some second checks that may include other monies. Have you ever heard of that.?
It is possible. I have had to request payment and interest on a few wells in Hughes. One was seven years old. Received a nice interest payment on that one!
What section, township and range are you in? I can see how many wells are on your acreage.
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12 7N 10E 1 7N 10E
Hughes county and Pittsburg county is also on the check stubs also. 75 acres and 45 acres around 120 or so total
You will find quite a bit of discussion on the Frances wells on the forum. Also the Clara wells. They are in section 12 and 1, plus 12 and 13. Ten wells. They went online in mid 2018. Not surprised they are dropping now. Natural to be declining by now. They have a lot left to give…
Having 120 acres though only collecting 6k is very low. To say the least I’m disappointed in such a major drop tht quickly
Fairly typical of horizontal wells. They have what is commonly called a “hockey stick” profile. The first few months-years are the shape of the blade. The decline is rapid but then the tail may last for decades which is the shape of the stick. Multiple sticks stacked on top of each other add up. Gas prices have been very low this summer. Perhaps they will pick up in the fall and winter with colder weather and a drawdown in reserve storage.