I have a small interest in Well API 4212734970 (Snowmass Unit A Dim 1H) and am experiencing a dramatic decrease in production. The monthly check from Chesapeake in November was about half the recent monthly payments. When I inquired about the December payment, I was only told that this was because it was below the required threshold of $100. I was simply told, “The well is currently in a producing status, but I’m showing very low production numbers for the month of October.” They had no explanation for this. Does anyone here know if the well is being serviced, or have any ideas about what could be going on?
It would be more helpful if you would list the county and state and a legal location. Horizontal wells do have a rapid natural decline, but they can also be shut in temporarily if another horizontal well close by is frac’d. That is to protect the older well. That is why the location information is needed. Someone that has acreage nearby may be able to help you with information.
Thank you, that should have been obvious to me. The well is in Dimmit County Texas. Your suggestion might be on target. In May I was requested to sign a Production Sharing Agreement to encourage further development of the unit. This would be done via horizontal drilling. They never mentioned that production might drop for a period of time.
I moved this over to Dimmit County, TX for you. Someone who has acreage nearby may be able to help.
You will have to go there and see the activity at the well and in the surrounding area. they will suspend production if a nearby well is being fraced but it is only temporary, From my personal experience with Chesapeake - Trust but verify.