I have producing wells in Reeves Co. Sec 16 & 19, Blk 4 with the same operator. The Sec 16 well Schwalbe-Sonoma State 120 01H shows Gas price for Jan 23 to be $0.66 on the revenue stmt. The Section 19 wells Bush State and Griffin State for Jan 23 shows gas price to be $4.55-4.64. Could the $0.66 price really be correct?
For Dec 22 the Sec 16 well Schwalbe-Sonoma State 120 01H shows Gas price to be $2.91 on the revenue stmt. The Sec. 19 Bush and Griffin State wells show gas prices to be $4.10-4.39
Why would there be such a wide spread in gas prices from Sec 16 to Sec 19 with the same operator?
First question is whether the production months are the same as gas prices have been falling. Gas wells can pay 2 or 3 months behind. Second question is whether the Schwalbe well is paying gas and NGL / Products separately and the other wells are paying the gas and NGL combined in a single line.
The Dec ‘22 and Jan ‘23 are production months for all wells. The Schwalbe-Sonoma pays Gas, Oil, PProd per line item. The Bush and Griffin wells pay condensate, drip, gas, and PProd per line item.
You need to add together the gas, NGL, and drip sales to find the total gas sales. Then divide by the well gas production for the month. This gives you the true gas price for comparison. The condensate from an RRC gas well is the same as oil from an RRC oil well.
Yes for your purposes. Gas from well goes through processing plant where liquids are separated out. May be called plant products, NGL, liquids, as well as drip condensate. Remaining is ‘dry’ gas which is called gas or residue gas. Products are sold by type (eg propane, ethane) but rolled together on a check detail. For some companies you may also see lease use gas, flare gas and fuel.