Wellbore Communications Issues

I stopped receiving income from Kem Ranch 1-24-25XH about 6 months ago. Owner relations at Marathon reported that the well has been down those months for wellbore communication issues. They are unable to supply information regarding planned repairs. Does anyone have an idea about how long it takes to resolve this type of issue? Is it possible there are no remedial actions available?

You can look up the well on the OK tax site. Gross Production Type in KEM Ranch in the lease Name box. The well was offline in July, August and September. It was back on in October and November. The values are very low, so it is possible that there is a mechanical problem. If you have your Division Order minimium set at $100, it could be a while before royalties get high enough to get to that amount. You can reset it to $25.

There are an additional five more KEM Ranch wells which were spud in mid 2021. I have a feeling the shut in time frame also correlates to the fracking and completing of those wells. They try to protect the parent well. They are not listed as online yet, but someone who has a working interest may know more.

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Thanks for the information. The tax gov website is helpful. Your analysis of the situation seems plausible.

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I agree with M_Barnes. Downhole problems happen on wells. As a royalty owner, you and the operator are partners. You both have a financial interest in the well producing the most oil / gas it can. The operator doesn’t want the loss of income just as much as you do.

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