# Cost of operating old vertical well
**URL:** https://www.mineralrightsforum.com/t/cost-of-operating-old-vertical-well/75343
**Category:** Eddy County, NM
**Created:** [April 25, 2024, 7:14pm UTC](https://www.mineralrightsforum.com/t/cost-of-operating-old-vertical-well/75343 "2024-04-25T19:14:49Z")
**Posts on this page:** 3
**Page:** 1
### Author:  [@fixit](https://www.mineralrightsforum.com/u/fixit)
#### Post date: [April 25, 2024, 7:14pm UTC](https://www.mineralrightsforum.com/t/cost-of-operating-old-vertical-well/75343/1 "2024-04-25T19:14:49Z")
Hey folks!
Hopefully, some of you more seasoned folks might be able to give me an idea of old legacy wells in New Mexico. Specifically, on NE/4 of 5-23S-28E API 30-015-23986.
This well was drilled in the early 1980s. So super old. I know a lot of companies’ strategies is to buy these old wells to hold leases in place until they are ready to drill modern wells. So, I’m curious about the following:
- Approx how much per month would this well cost to operate?
- New Mexico law states that leases need to be in “producing quantities.” I noticed this well produces nat gas under 2,000 MCF per month per the EMNRD. In my mind, that’s pretty low to be economically viable.
- Have you seen anyone successfully argue their way out of a lease and get a new modern lease in its place?
---
### Author:  [@NMoilboy](https://www.mineralrightsforum.com/u/NMoilboy)
#### Post date: [April 29, 2024, 4:10pm UTC](https://www.mineralrightsforum.com/t/cost-of-operating-old-vertical-well/75343/2 "2024-04-29T16:10:21Z")
It costs very little to operate a flowing gas well. Sub $1k/mo.
I don’t know what the terms of your lease are, but I would assume that the two horizontal Wolfcamp wells in the NE/4 of Section 5 likely hold most depths of interest.
---
### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [July 24, 2024, 7:15pm UTC](https://www.mineralrightsforum.com/t/cost-of-operating-old-vertical-well/75343/3 "2024-07-24T19:15:01Z")
This topic was automatically closed after 90 days. New replies are no longer allowed.