I own some very small percentages of some wells in McClain County. The monthly check is my main source of income. Over the last 6 months, each check is less and less until I almost wouldn’t miss it. I was wondering if others are experiencing the same thing and if so, what the reason might be? I’m new to getting these checks so I don’t know if this is normal or not. Appreciate any comments.
Yes Sarah, it is normal for wells to decline rapidly. On average, most new horizontal wells in Oklahoma deplete 30-50% of their reserves in the first 3 years. Add to that depletion, the extremely low price of natural gas and you get this drastic decline in revenue. Hope for the best but plan for the worst. Good Luck.
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Sarah, you received some solid advice from Todd. There is some modest horizontal activity in the SW portion of McClain. Ovintiv has posted their predicted spending for OK next year which will be about 5% of its total. The permian is going to be over 50%. This gives you an insight as to where companies are allocating drilling funds currently.
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If a well ceases to produce & monthly royalty checks stop, is anyone responsible to contact the royalty owners to relay the reason? Part 2 of my question, if a royalty owner contacts the producer and producer says they don’t know the exact reason & provide speculations, who has the definitive reasons for current well status?
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No one is required to contact the mineral owners if production ceases. It could be fracking nearby, mechanical trouble or the well is just finished. The operator knows the reason, but they do not have to tell you.