Last December my wife and I began receiving royalties from a new horizontal oil well in Saskatchewan. The biggest production was for the month of January since then production has gone down a little each month. The September production was right at half of January. We have had an old well for 24 years. Production goes up and down with no discernible pattern. Can someone give us an idea of what to expect from this new well? I'm not complaining here, I'm just really curious.
A typical ND Bakken well slows down quickly. At the beginning, a Bakken well will do 1000 barrels a day and drop from that point. By then end of the first year, many Bakken wells will be doing around 100 barrels a day. By this time, most wells will have a pumping unit. By year 2 or 3, the well will be doing around 50 to 75 barrels a day and should hold steady around that production, hopefully for another 30 years.
They are areas where a well will do better. I know one well, that did 600 a barrels a day for two years free flowing, and the oil company finally put on a pumping unit when the rate slowed to 450 barrels a day as they wanted to get production back to 600 barrels. What a well !!!!!
It just depends on the well what your production will be. I guess my advise to you is, don't count your chickens until they hatched.
Thank you Ted. We have been careful not to let it go to our heads.
Ted Mehr said:
A typical ND Bakken well slows down quickly. At the beginning, a Bakken well will do 1000 barrels a day and drop from that point. By then end of the first year, many Bakken wells will be doing around 100 barrels a day. By this time, most wells will have a pumping unit. By year 2 or 3, the well will be doing around 50 to 75 barrels a day and should hold steady around that production, hopefully for another 30 years.
They are areas where a well will do better. I know one well, that did 600 a barrels a day for two years free flowing, and the oil company finally put on a pumping unit when the rate slowed to 450 barrels a day as they wanted to get production back to 600 barrels. What a well !!!!!
It just depends on the well what your production will be. I guess my advise to you is, don't count your chickens until they hatched.