We don't have an a pump on our mineral rights area. The pump is on another property that runs through our mineral rights area. Is there anyway to find out what is really going on with production of the well. Could they be dried up already? Our check are up and down and this month we didn't even get a check on one of them. None of them are very old maybe a year but that is all. I was hopping for more money but I guess it is just a what and see, if you get money then great and if you don't oh well.
I would really like to know more about this mineral rights and oil rigs but where do you find things out at?
Thank DIane
Most states have an oil & gas division website. The amount of info varies but they should show production numbers which you can compare with the payments you've received.
You might post the legal description of your minerals and someone could help. At the least, post which state and you should get the web address where to look.
Diane:
It appears that your minerals are located in McKinzie County, ND. Could you provide more information regarding this well such as the operator, lease name, etc. Providing this information will make it easier to answer your questions.
Yes I go to the website but that is a month behind and not a lot of info for me when you really don't know what you are looking at
Murex Petroleum well name Daron William 28-33H Section 28 Township 151 Range 103
Petro Hunt there is two section 26b-35H-1 23 151 103
27B-34-1h 27 151 103
Ms. Johnson, I have a subscription to the North Dakota Industrial Commission Oil and Gas Division and I could check production for you if you could provide the legal descriptions from your lease. I would be more than happy to do so and I do it regularly for other members of the forum. Wells do decline and checks get smaller, the price of oil falls and checks get smaller [or the price goes up and checks get bigger] and sometimes the wells need work done on them and they produce nothing for a month or are shut in for a period of time because someone else is fracking their well nearby and bad things can happen if your well is being produced when someone else is fracking nearby.
The Daron William produced almost 2500 bbl in August which is roughly 1/3 of what it started at but it doesn't have a pump on it yet and production may increase for a time when it does and start declining again from there. The Klose in section 27 has a cumulative of 63,382 in 13 months as of august with production falling about 60% from the first month, producing 3,569 bbl in august, this looks like it's within the range of normal decline. The Klose in section 23 has a cumulative of 40,716 , produced 4,076 bbl in August, also seemingly within broad tolerance of how these wells decline. Just to be safe I would call about the check you didn't receive. I have had checks sent by the operator without postage, long story which I won't recount here. Your wells probably have long lives ahead of them and the measure of a well is how much money it produces over time and you could have decades of small checks coming.
Diane Roche-Johnson said:
Yes I go to the website but that is a month behind and not a lot of info for me when you really don't know what you are looking at
Murex Petroleum well name Daron William 28-33H Section 28 Township 151 Range 103
Petro Hunt there is two section 26b-35H-1 23 151 103
27B-34-1h 27 151 103
I did receive a check from Petro Hunt, but not Murex the Daron williams.. Now from what I heard was they would not but any pumps on any of our mineral rights. Since they have the pumps on the begging of the line they wouldn't put a pump at another location. Is that true. So is that what is going to happen these wells decline and they are done? I guess just hoping it would last for a while and a steady flow of a little income. I only have about 50 acres so not much.. Now on one of the sections there is nothing going on will we need to do another lease on that portion? Thank you so much for all your help.
Ms. Johnson, I believe they will put pumps on the wellswhen production falls below a certain point. It costs money to install a pumpjack or submersible pump and money for the electricity to run them. I saw that at least one of your Klose wells was already on artificial lift. It's cheaper for the operator to not install a pump as long as the well will still flow from it's own pressure. The operator wants to get the most oil out for the least amount of investment, but at some point they will install a pump but it may be when production falls below 40 barrels a day and you aren't there yet. I would call about the check you didn't receive, it's possible that it was small enough that the operator is holding it until the payment is greater than $100 or like happened to me once they may have mailed it without postage.
I did call them and it was under $100 so will get a check next month.. Now I was told that if a pump was on the well we would get more money. Is that true? Thanks for all you help.
Ms. Johnson, they can pump the oil faster than it would flow by itself but they probably wouldn't pump it as hard as they could because it might hurt the total eventual return. Many wells exhibit what I have heard people call a pump bump, an increase in production after the installation of a pump from which the well starts declining again. I'm sure the operator can regulate production as when the price I received for my oil dropped from $93 to $75 per barrel the production dropped by 1/3 about 4,000 barrels in a month on my best well. I have some wells that are over 4 years old and when the price of oil goes over $100 a barrel the production rose from 1,300 barrels a month to 2,200. It's not a coincidence, and I would rather the operator have a pump on the well to have even greater ability to regulate production to take advantage of opportunity. When it comes to production, when they make more money, you make more money. Never ever, ever, count on the royalty check. You don't want to be counting on the check and have that be the month they decide to shut the well down and install the pump, do other work or shut the well in because someone else is fracking nearby.
Thank you so much for your wisdom and helping me understand about this process.