I have a general question about new well production. I received my first royalty check on a new well being operated by Rimrock. The royalites were from 9/18 to 12/18. Typically does the well produce the same amount the second quarter? Just wondering how long a well will produce especially in the first year? I hope this makes sense. Still pretty new to this game.
Thank you,
If the well is a horizontal well, then the first month may be slightly lower due to the date that the well began production and also if the frac water is still being produced. In general, the well’s best production is in the early months and then the production drops off rapidly and then flattens out and can last for decades. So do not expect the second quarter to be a good as the first.
Here is an example of some wells I have in CANA Woodford in Canadian County. You can see the first three wells in three different but in contiguous sections. Look how similar they turned out to be after a few months. Note the decline shape. We call it a “hockey stick”. Received a whole bunch of offers to buy my “dying wells” in late 2012. However, I knew what was going on in the area and did not sell. Good thing. Look what happened next-lots of infill wells. Notice how different all the additional wells are in the beginning, yet they begin to converge as well. Pictures always help. Not promising your wells will be exactly like this, but this gives you a feel for what a long time looks like. These wells have been on line for a good while now-early ones ten years. (I need to update my picture!) . Our engineer predicts about forty more years.
Thank you M. Barnes!!! I think it is a horizontal well, possibly Woodford Well. I will have to check my doc’s.
