Reference: API 389-37243 Pipeline State 58 10-3
This well came online in Oct/Nov 2018 and production was strong. It has declined considerably in the 7+ months, however. From a peak of 22250 bbl of oil in December to 9150 in April. Approximately a 60% decline in production in 4-5 months. Is this typical of an oil/gas well? Gas and NGL have both declined during the same time but not as much as oil. I expected a decline rate over time but am a bit surprised by the significant decline in the early months. I have contacted the operator and I’m waiting to hear their version.
Also…the last two royalty payments have shown a negative number for natural gas. I realize gas is being flared or essentially given away, but didn’t realize there would be deductions in my royalty income. Does this mean the operator is having to pay to dispose of gas?
Thanks for any input!