We're new to all this and am hoping an expert could answer two dumb questions:
1. Generally speaking, is it typical for payments to fluctuate fairly wildly between months (sometime as much as a $2000 difference) or are they fairly constant?
2. Generally speaking, how long is a well productive?
thanks very much.
Dan The first few months it will fluctuate a lot, but then will settle down and be closer. How long will it last? That is a Good question and very hard to answer. Some only a few years. Others 40 years.
Dan, Assuming you are being paid for production from new horizontal wells, it will vary quite a bit AND decrease rapidly. How long it continues the drop is always too long. The hope is that the well production settles at a high enough rate to eventually pay out the expense to drill it & extra. Many times payout is never achieved and the winners are the state tax system & the mineral owners ;0) There aren't enough HZ wells that are old enough to tell if they will produce as long as the original vertical wells have which is 40+ years in many cases.