# Initial Production Rates

**URL:** https://www.mineralrightsforum.com/t/initial-production-rates/22571
**Category:** General Mineral Rights Discussion
**Created:** [October 31, 2011, 10:02pm UTC](https://www.mineralrightsforum.com/t/initial-production-rates/22571 "2011-10-31T22:02:08Z")
**Posts on this page:** 7
**Page:** 1

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### Author: ![Sue\_McGuire](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/eb8c5e/32.png) [@Sue\_McGuire](https://www.mineralrightsforum.com/u/Sue_McGuire)
#### Post date: [October 31, 2011, 10:02pm UTC](https://www.mineralrightsforum.com/t/initial-production-rates/22571/1 "2011-10-31T22:02:08Z")

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Sometimes an O&G company will post that certain wells IP’d at a certain rate - I think this means initial production rate. How is this calculated? If you take what you read and then found the lease ID and looked at the first month’s production - it doesn’t match - if you calculate the first three months, and divide by 3 it still doesn’t match. How to calculate the IP rate of a well then?

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### Author: ![Reagan\_R.T\_Dukes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/reagan_r.t_dukes/32/4991_2.png) [@Reagan\_R.T\_Dukes](https://www.mineralrightsforum.com/u/Reagan_R.T_Dukes)
#### Post date: [October 31, 2011, 11:42pm UTC](https://www.mineralrightsforum.com/t/initial-production-rates/22571/2 "2011-10-31T23:42:55Z")

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Often, a reported IP is simply a 24-hour rate and sometimes it can be a test for just a few hours that is extrapolated out to 24 hours. It is only an indication of the potential of the well.

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### Author: ![Buddy\_Cotten](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/buddy_cotten/32/5079_2.png) [@Buddy\_Cotten](https://www.mineralrightsforum.com/u/Buddy_Cotten)
#### Post date: [November 1, 2011, 4:26am UTC](https://www.mineralrightsforum.com/t/initial-production-rates/22571/3 "2011-11-01T04:26:40Z")

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IP is indeed Initial Production rate. Sometimes it can be over a day, week or month average. There is no true standard.

The only thing the IP tells you is that the well is not dry.

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### Author: ![Sue\_McGuire](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/eb8c5e/32.png) [@Sue\_McGuire](https://www.mineralrightsforum.com/u/Sue_McGuire)
#### Post date: [November 1, 2011, 2:51pm UTC](https://www.mineralrightsforum.com/t/initial-production-rates/22571/4 "2011-11-01T14:51:56Z")

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Thanks - now this makes sense.

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### Author: ![Jason\_Stewart](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/j/e47c2d/32.png) [@Jason\_Stewart](https://www.mineralrightsforum.com/u/Jason_Stewart)
#### Post date: [November 2, 2011, 3:26am UTC](https://www.mineralrightsforum.com/t/initial-production-rates/22571/5 "2011-11-02T03:26:37Z")

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IP is a pretty fuzzy number. It could mean the actual first full day of production, an average of the first full week or month, or perhaps the peak production rate achieved early in the life of a well. As Buddy implies, it’s not much to hang your hat on.

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### Author: ![Sue\_McGuire](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/eb8c5e/32.png) [@Sue\_McGuire](https://www.mineralrightsforum.com/u/Sue_McGuire)
#### Post date: [November 2, 2011, 2:55pm UTC](https://www.mineralrightsforum.com/t/initial-production-rates/22571/6 "2011-11-02T14:55:06Z")

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I understand that now - thanks.

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 4:08am UTC](https://www.mineralrightsforum.com/t/initial-production-rates/22571/7 "2018-08-15T04:08:41Z")

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