I now have a question. My latest statement shows one well that went from over 5k volume last month to 250 volume this month. The gas volume did not decrease? Its volume was around 11k both months. Is this normal?
This well is only 16months old. The other well next to it has no change in volumes other than the expected slow declines that are normal and came online at the same time. These are in Midland county.
Could the the process from Parsley selling to Pioneer be part of this? Not sure who to ask questions about this. It seems strange to see a drop of approx 95% in oil production while the gas and plant production drops only 4% on this well when the other stays approximately the same at 6k Oil 11k gas.
Thank you in advance for your input and thoughts on this. MK
Public production records only have volumes through November but both wells look very steady. Parsley did transition to just a skeleton crew here in Austin mid/early-January (with handoff to Pioneer) so the transition could be a factor. It’s been my experience gas volumes are indicative of well status (on/off; hard to produce one without the other at those volumes), but also that gas is typically a month behind oil for payments. Are both volumes for the same month?
Ah ha, that may be it ? I did not see the gas and plant as being one month behind. Thank you for pointing that out. I will wait and see what happens? It still is interesting that this one well would drop so fast unless they are planning a shut-in?
Thank your for your response.
Sincerely,
Michael
Taking a look at the map, I see a possible reason why they might not be producing (if that’s the case). There looks to be a rig drilling more wells on the other half of the section. It’s not unheard of to shut-in wells in a 1-mile radius to avoid drilling fluid or completion fluids from damaging the nearby wells, though more common to shut in the wells during the completion than the drilling.
Depending on where your acreage is (if you have any on the East 1/2 of 8 or SE 1/4 of 5), you might actually be in these wells. Here’s the plat:
Thank you for that info as well.
Here are the tracts I am in.
SPBY DRIVER UT TR 27 T5S BLK 37 SEC 5 SW/4
SPBY DRIVER UT TR 28 T5S BLK 37 SEC 5 SE/4
Again many thanks,
Michael
Acreage in the SE/4 of Sec 5 should get you allocated into these two wells based on the amount of completed lateral on your lease. Probably will have a royalty decimal very similar to the two existing wells drilled based on your acreage description (assuming uniform interest SW/4 to SE/4) and the similar units around the wells.
Another piece of the puzzle is which wells go into which tank and did they pick up that month. Sometimes a truck will only have “so much room” left in its tank to pick up from one wellsite tank, not both and will pick up the other well first the next month. Gas travels by a gathering line, so not subject to “room in the pickup tank”. See if it evens out the next month. And like Tracy said, gas is usually a month behind the oil, so is frequently back calculated. Check your actual sales months on each. Royalties are based on the actual sales, not the production.
Thank you for that info as well. As far as the amounts, they appear to reflect on production and value at that day. Not sure if it being ORRI makes a difference in how it is paid?
Sincerely,
Michael
