Curious to know why our oil checks are lower than before the higher oil prices. It seems a bit odd.
You might ask the operator this question. There are many reasons why checks could be lower. Many gas wells have dramatically lower production after the first few months. It’s simply the nature of a gas well.The reservoir may be losing its pressure head. The reservoir may be being depleted. The well may need repair. There may be an offset well that’s causing production to be diminished. Impossible to tell without knowing more.
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I agree with Aimee. Also, be aware that the prices that you see on the news are spot prices at certain locations and your payments are probably tied to contracts which may not be tied to the same parameters. Also, oil payments are about 1-2 months behind sales and gas payments are about 2-3 months behind sales. Wells naturally decline over time, horizontal ones especially quickly in the early years. So many factors are involved.
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