I own mineral rights to the Indultado oil well operated by Casillas. The last monthly report showed a reduction in production of over 50%… from approximately 400 BPD to 200BPD. I do understand the wells will naturally diminish productivity over time, but this does seem out of the ordinary. Casillas is mute on as to reasons. I know they are not required to explain much of anything, but, for the sake of good PR, a little information would be appreciated. Does anyone have an explanation on this decrease in production? Maintenance? Cold Weather? The report is from period ending November.
Could be many reasons… Perhaps the oil production hasn’t changed, but they failed to not sell as much oil out of the storage tanks.
Another reason might be they had a mechanical breakdown had to shut-in the well for a period of time.
Horizontal wells do drop rapidly over the first few years. Perfectly normal. It is better to watch a few months to a year of production instead of just a single month. Last year was a rough year with COVID, layoffs, shut-ins, etc. Many wells were curtailed for a few months and then when they came back on, they had a bump up then returned to their natural pattern of decline.
They don’t have to tell you anything since you can watch the reports of production on the state tax website for free.
You can watch the production numbers for the last “12 months” at: https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php
NoBS: This well was doing extremely well until Casillas shut it in. Once they put it back on line you are correct that the production is about 1/2 of what it was. There are many factors involved, but this happens all the time on horizontal wells. Unfortunately, chances are it will not get better from here. FYI, production in January was 6419 BO & 8255 mmcf. I have a working interest in this unit. Casillas is going to drill 2 Woodford wells in the near future, the WhistlePig #1 & #2 wells.
Well… that’s not good news! But, it is what it is. I simply thought that a 50% reduction in output in a single month was a little unusual. Perhaps a man made glitch. I guess we shall see. Someone representing Casillas told me that they plan to drill 4 wells from the single space. I’m not sure that I believe that. But that would be nice if so. I’m not sure why the truth is so hard to come by now days. Thanks, T
I would check to see if there were any offset fracs at the same time. It’s possible it was just shut-in to protect from that…I wouldn’t just assume it won’t return to the prior trend. I’m curious who the Casillas rep is or what they role they are in who would talk about their full development plans? They typically won’t share that kind of info because it can potentially be used against them at the OCC…that’s one valid reason why they might not be 100% forthcoming - not to be shady, but to prevent being exploited.
The production has at least stabilized in the 200 BOPD range for the last several months. The well was shut-in due to economic conditions, not because of any offset fracking.
The 2 WhistlePig wells (Woodford) are being drilled from one pad, very near the center of the south line of the section. One will have a wellbore 1320’ from the West line of the section and the other wellbore 990’ from the East line of the section. With that set up, it wouldn’t appear that they plan on drilling more. However, their is room for another Sycamore well in the E/2 of the Section. They didn’t tell me if/when they intend to drill that well.
I would believe the well was shut-in for economic conditions in Apr/May timeframe, but not November. I think we are talking about different shut-in events…
What is the section, township and range?
Sec 21 & 28-6n-4w, McClain Co. I am a working interest owner.
FYI, it does look like Ovintiv completed several wells directly to the East of this well after all in the 4th quarter last year. I expect that is why it was shut in and negatively impacted.
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