16, 14N, 08W. Checks have dropped considerably. Wondering if anyone has information about what is going on in this area, and if it might be time to sell.
Horizontal wells have a natural decline. The first four years generally give the most production. However, they may have a tail of decades at a stable low rate. Remember that you only have one horizontal well in this section and there is quite a bit or reservoir left in which to drill more wells. Think long terms and the potential of more wells in your pondering. I have no guarantee on timing, so that is a factor as well. Also no knowledge of additional reservoirs, but would assume both the Woodford and Mississippian might be possibilities here.
The general pattern I have see is for a company to drill one well in a section in order to hold by production . They drill out their leased acreage and then they will come back to the profitable areas and infill drill. Ten of the sections in this township have recent increased density cases filed at the OCC. So the trend is holding for this township. Patience is often the key.
If you have an extreme need to sell, then that is another issue. If not, then holding on may be worthwhile.
Thanks so much! I appreciate your input.