I had three gas wells however one was capped & abandoned last sept I guess due to low production.royality checks on the other three have dropped drastically over the last few months.is this due to the downward surge in oil prices or are the wells going dry?my biggest question is are the wells running at full capacity all the time or is the production regulated by demand or other factors.my spouce & I are retired & on SS.we depend on the roylality checks to supplement or income.i am just trying to prepare for what is coming in the near future.any info on the subject would be greatly appreciated,george
What state? and are the two (not the abandoned one) newer wells, or old ones? New ones usually start off big, then drop off a lot in the first year, depending on a lot of things. Also the price of natural gas goes up and down, and the higher royalty checks might have been during the higher price period of a few months ago.
A lot of unknowns there.
oaklahoma.one of the wells is quite a few years old,the two remaning are about three years old.funny thing is the well that was capped & ababdoned was producing more than the older producing one.i expect the older well to be abandoned any time now.
Bloomberg showed west Texas intermediate to be $47.66 this morning. Natural gas was at $2.79. What you would receive will also be reduced by compression and transportation charges. The oil and gas business is chicken one day and feathers the next. We are dining on feathers right now.
You want whatever is under your land to come out when the market is higher. Be thankful your wells are not running full bore right now. How much more of nothing do you want?
Have patience. The situation will change.