Using information available through the Texas Railroad Commission I’m trying to understand, as a mineral rights owner, how to assess (without getting lost in the engineering minutia) the potential for oil and gas production of a particular area using information from recently completed nearby wells
Am I correct that that information is contained on Railroad Commission’s Form W-2, with the pertinent part of that form located under the “Initial Potential Test Data” category, with its 2 sub-categories of “Production During Test Period” and “Calculated 24-Hour Rate”? In those 2 sub-categories is the pertinent information the “Oil (BBLS)” figure and the “Gas (MCF)” figure?
Is this the best way for a non-engineer to determine, in a simplified way, the possible potential of production in nearby areas before going to the next step of hiring a professional opinion?
If yes, in general, what would be considered poor, average, good and spectacular figures for initial oil and gas production?
Any additional thoughts and advice on how to make an initial assessment would be welcome.
You asked some great questions for which I don't know the answer. I have also found that the Ector County board gets little activity, I would recommend that you post your question on the Reeves County board. That board has a lot of activity and a number of individuals who could answer your questions. Your questions could apply to any county. Good luck!
Depends on the type of formation drilled into and the corresponding decline curve.
What I mean is this in the easiest way I can explain without getting myself confused…
Hyperbolic Decline - Wolfcamp or Wolfbone. Comes in with immensely high production and in 4 months it levels off. You make the most in those first couple months than you will for the life of the well.
Exponential Decline - comes in nice and the production is almost a consistent decline from beginning to end.
If you want real answers, you’ll be paying $$$$$ for the type of info you’re looking for. I’d hire a group if your mineral interest is that large and they’ll do it professionally contingent on a conveyance of a portion of that interest. If we are talking 10-100 acres then I wouldn’t waste your money. 300, 500, 1000+ acreage then it’s worth the time and money.
What your asking for is geology and engineering and that is not shared freely.