hello. I just received my 2nd RI ck dor the new Seaport well and it appear to reflect no activity feom Continental at this well, or at least modest (e.g. 1,000 bopm, 77,000 for gas). Can anyone fill me in on what the current status os there and if your 2nd RI ck was same as the initial? I see no further wells drilled either. Thanks. .
Your first royalty check from a well is usually for multiple months. Then mostly monthly from there on.
You can monitor the production at the OTC site. https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php
Type in Seaport in the Leasename box. The site is usually a few months behind which is normal. Horizontal wells decline rapidly in the beginning and then the slope of decline flattens out and wells can last for decades at a low rate.
You can compare the other similar wells in the township to the Seaport well. Use the link above to the OTC tax site. The names are Essex, Highline, Assault, Justify, Chelsea, Wynell and Axelrod all drilled within a similar time frame by Continental or Citation. You can use the Print function on the Production history tab to print out the information from the last few months for comparison. Some wells are one section, some two and some parts of three, so that is important to distinguish.
Performance of wells can only be compared in close areal proximity within a similar time frame using similar completion techniques in the same reservoir. Can’t compare wells in one county with another unless you have some technical background and know what is different by location.
The first check usually reflects about five-six months of production. Each following check is for only one month. Yes, you have activity and yes, it is normal. There are no further wells at this point because the operators typically drill one well per section to hold all the leases by production. They may come back later and drill infill wells. Many operators are running on tight budgets coming back out of last year which had drastic price drops due to COVID demand drop. They are coming back cautiously as they have to live within their free cash flow.
Be sure and keep your check stub statements for seven years for IRS purposes. Also do not be surprised as these horizontal wells typically lose volume very quickly. But they can last many decades at lower volume rates.
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