I’m sure this is a rather dumb question. I just got my first check and it is for 6 months and it is practically nothing!! Why would this week be doing so poorly? I was offered quite a large sum of money before they began drilling and i guess my nievate assumed that it would be a decent well. That being said, do these things ever turn around or is it just a bust? Also, how does a person find out what is happening with this well each month? Is there somewhere i can go to check these things? Thank you so much Sincerely TGLG
Here is a link to the Oklahoma Tax Commission. Be sure when searching you use a leading 0 so you have two number, ie Section 6-17N-5W, you would fill in Section “06”, Township 17N, Range 05W. Fill in the search by Section and disregard the Quarter section box.
As for the production, not all wells are profitable. Not all people who buy minerals make a profit by doing so. 99.99% of the wells do not ever produce tomorrow more than they did today. The only hope is for there to be more wells drilled in your section that find a better reservoir. Welcome to the oil and gas business.
Good Luck Todd Baker
Many things affect the quality of a well-the reservoir, completion techniques, etc. Your royalties will depend upon the products (oil, gas, condensate, etc.) and the price for those products. Also, your acreage is a determining factor. The Mango is a gas well and prices for gas are low right now. If you have a very small acreage position, then you will not have a very high decimal percentage. One would need to look at the well performance of similar wells in the area to determine if this well was in the normal range.
Thank you so much for your responses. Obviously not exactly good news, but i guess now i know.
They did place the well so that they could drill future wells, so some bit of possible upside if prices go up again.
You can watch the well progress here. You can also look up the similar wells by section, township and range.
Thank you so much!! This helps me ALOT!!
Mr Baker i did not get the link for Oklahoma Tax Commission. Could you send it again please?
Ahhh well thank you for that. I didn’t even know it was a gas well. I love all the knowledge you all have. It really helps more than you know!! Keep it coming.