I have overrides with Occidental in Weld Co, Co. In Township 4N range 67 and 67 W. Production seems to be steadily declining and I am wondering why. Things went from virtually zero to quite a lot in September 2022 but after 1 year production has slowly decreased from its high. Is this due to the overall geopolitical situation with bearish oil and gas prices or is there some other reason? I am getting around about $2000 a month.
Wells normally decline over time as the pressure decreases. Especially with horizontal wells. Your description above has the range twice. Please give the section or the well names and I can check them.
Property Name County/State Property Number Shake 11-3HZ NBRR Weld County, Colorado 139138-4 Shake 11-3HZ NBRR Weld County, Colorado 139138-5 Shake 11-5HZ NBRR Weld County, Colorado 139140-4 Shake 11-5HZ NBRR Weld County, Colorado 139140-5 Shake 11-7HZ NBRR Weld County, Colorado 139142-3 Shake 11-7HZ NBRR Weld County, Colorado 139142-4 Shake 11-9 NBRR Weld County, Colorado 139144-3 Shake 11-9 NBRR Weld County, Colorado 139144-4 Bake 11-16HZ CODL Weld County, Colorado 139151-3 Bake 11-16HZ CODL Weld County, Colorado 139151-4 Bake 11-17HZ NBRR Weld County, Colorado 139152-3 Bake 11-17HZ NBRR Weld County, Colorado 139152-4 Bake 11-18HZ NBRR Weld County, Colorado 139153-3 Bake 11-18HZ NBRR Weld County, Colorado 139153-4 Bake 11-19HZ CODL Weld County, Colorado 139154-3 Bake 11-19HZ CODL Weld County, Colorado 139154-4 Bake 11-20HZ NBRR Weld County, Colorado 139155-3 Bake 11-20HZ NBRR Weld County, Colorado 139155-4 Bake 11-21HZ NBRR Weld County, Colorado 139156-3 Bake 11-21HZ NBRR Weld County, Colorado 139156-4 Bake 11-22HZ CODL Weld County, Colorado 139157-3 Bake 11-22HZ CODL Weld County, Colorado 139157-4 Bake 11-23HZ NBRR Weld County, Colorado 139158-3 Bake 11-23HZ NBRR Weld County, Colorado 139158-4 Bake 11-24HZ Weld County, Colorado 139159-3 Bake 11-24HZ Weld County, Colorado 139159-4 Bake 11-25HZ Weld County, Colorado 139160-3 Bake 11-25HZ Weld County, Colorado 139160-4 Bake 11-26HZ CODL Weld County, Colorado 139161-3 Bake 11-26HZ CODL Weld County, Colorado 139161-4 Bake 11-27HZ NBRR Weld County, Colorado 139162-3 Bake 11-27HZ NBRR Weld County, Colorado 139162-4 SBJ 13-11HZ NBRR Weld County, Colorado 139399-3 SBJ 13-11HZ NBRR Weld County, Colorado 139399-4 SBJ 13-12HZ CODL Weld County, Colorado 139400-3 SBJ 13-12HZ CODL Weld County, Colorado 139400-4 SBJ 13-13HZ CODL Weld County, Colorado 139402-3 SBJ 13-13HZ CODL Weld County, Colorado 139402-4 SBJ 13-1HZ CODL Weld County, Colorado 139405-3 SBJ 13-1HZ CODL Weld County, Colorado 139405-4 SBJ 13-2HZ CODL Weld County, Colorado 139406-3 SBJ 13-2HZ CODL Weld County, Colorado 139406-4 Exhibit A ñ Page 1
Property Name County/State Property Number SBJ 13-3HZ NBRR Weld County, Colorado 139407-3 SBJ 13-3HZ NBRR Weld County, Colorado 139407-4 SBJ 13-6HZ CODL Weld County, Colorado 139463-3 SBJ 13-6HZ CODL Weld County, Colorado 139463-4 SBJ 13-9HZ NBRR Weld County, Colorado 139464-3 SBJ 13-9HZ NBRR Weld County, Colorado 139464-4 SBJ 13-10HZ CODL Weld County, Colorado 139465-3 SBJ 13-10HZ CODL Weld County, Colorado 139465-4 SBJ 13-4HZ NBRR Weld County, Colorado 139466-3 SBJ 13-4HZ NBRR Weld County, Colorado 139466-4 SBJ 13-5HZ NBRR Weld County, Colorado 139467-3 SBJ 13-5HZ NBRR Weld County, Colorado 139467-4 SBJ 13-7HZ NBRR Weld County, Colorado 139468-3 SBJ 13-7HZ NBRR Weld County, Colorado 139468-4 SBJ 13-8HZ CODL Weld County, Colorado 139469-3 SBJ 13-8HZ CODL Weld County, Colorado 139469-4 RICE 6-3I7 JSND Weld County, Colorado 152286-2 RICE 6-3I7 CODL Weld County, Colorado 152422-2 RICE O 6-6 JI JSND Weld County, Colorado 153021-2
I did not investigate every well, but did quick look. The wells look like normal decline curves behaving like horizontal wells do.
The early years of the wells benefited from high volumes and high prices for oil and gas. The last few months has had low gas prices, so that is affecting revenues along with the normal decline.
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Thank you very much for looking into this for me.
If I receive a new division order does that mean that new production is anticipated?
Yes, it means that the well has been completed and is now on production. The DO is an agreement to pay the recipient according to the decimal listed. Determined by the net acres, spacing, royalty or your ORRI
Thank you again. You have been most helpful.
Hello MaggieC, I also have some fracked wells in Weld County. My income dropped drastically by ~82% in less than a year. I heard a suggestion that fracking processes have changed to less expensive local sand vs. the more expensive higher % pure silica to lower percent silica and higher silicates. That may be too technical, but if true. oil must be left in the ground because the projections are way off.
We also had a sharp drop in gas prices over the last few months so that may factor in as well.
Interesting but too technical for me. 
Think of a full water balloon with a tiny pin prick sitting in the bathtub. The balloon deflates over time. The higher pressure at the beginning squirts out the water. As the balloon deflates, the water comes out more slowly.
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Thomas, companies are continuously seeking more effective as well as economical completion methods. In the case of many non-conventional reservoir horizontal wells, the production half-life is around 3 years with an economic life of 20-25 years. When you factor the production decline with the decline in crude and natural gas prices, then you are able to further understand such a rapid revenue decline. Although sand cost is a significant cost of a completion, most operators will not sacrifice effectiveness for cost savings.
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Thank you for your explanations. I am just trying to get some understanding of it all.
Question : if a new well comes on production in the same area where I have current interests in other wells would I receive a new division order?
It depends… If the well is a new horizontal well, then most likely. If you are in a waterflood unit, maybe yes, maybe no.
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Thank you - I’ll try to look into this. How would I be able to follow activities in the Townships I have interests in?
You can use https://welldatabase.com Lite plan, which is free, to stay up on activity. It takes a bit of work to understand, but it is workable. You can also use map system at the OCC, OCC Well Data Finder. It is not great, but it is free. Both sites are going to have a learning curve. Enverus has modified MiQ, available if you get check details through Enverus, system that I believe still offers a free plan with some well/activity reporting.
The OCC is only for Oklahoma.
The Colorado system is different.
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Sorry I missed that one Barnes. I was not paying attention to the State. CO has a much better system to allow Maggie to stay on top of activity. Thanks for the bail out.
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I also use the welldatabase.com app for free.
When looking for wells, I start with the township or the abstract where my minerals are located. Wells do not always spud in your section, so expanding your search a bit will let you know the preferred drilling direction due to the underlying structural grain. For horizontal wells, the best drainage comes when the well direction is perpendicular to the natural fracture system.
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