How to Predict Decline Rate, Production and Lifespan of a Well?

HI--I'm new here and have enjoyed reading through many discussions in this forum and on the MineralWeb site. I've learned a lot but I still have a few questions:

We inherited mineral rights from my husband's parents and grandfather. We are currently receiving royalties from EOG from a well in Randall Creek, Weld County and are trying to plan for the future-VERY conservatively.

Is there any way to predict the lifespan of the well? The projected output and decline rate? Is that something EOG would tell me if I call their royalty-related number? Is there a way to predict production based on their investment in the well? Thanks!!

Do not think you are going to get a real answer as I have always been told "your guess is as good as ours" from the oil guys. With all the new drilling and fracking technics, I don't really think they know. Our first well was drilled in 1968 and has been re-drilled and fracked so many times I have lost count, but its still producing.

Talk to your accountant as you are allowed by the IRS a depletion deduction on your tax returns.

  • Depletion Allowance - The depletion allowance is one way to accomplish this. Since minerals are a finite source and will eventually play out, the IRS code generally allows royalty owners to deduct up to 15% of the income from their mineral interests.

Thanks, Gary. The month to month extraction last year varied so much I'd love to know what we can expect in the future. I'm impressed your well is still producing since 1968!