Virginia, Do you have enough experience with your H well to know the degree of decline? I did a cursory search on “Oil Well Records Data Base” and impression is the decline is dramatic even though the total Barrels can be dramatic in a short time.
H Well Decline, Production Data through August 2012:
Wolf 1-29H – 506 BPD in Month 1 to 166 BPD in 6th Month – Total 52,343 Barrels
Matthews 1-33H – 358 BPD to 29 BPD after 9th Month – Total 35,247
Johnson 1-33H – 159 BPD to 23 BPD after 9th Month – Total 14,428
The well has only been producing about 1 year and it’s in the Cleveland, a whole different ball game than the Mississippi, but my guess on these wells would be at least about 50% or more within the first year and down from there. Most wells come back real good at first and within a couple years drop to about 30% or less. How long will the Mississippi last is another story. At present, some of the wells in Woods County haven’t lasted more than a year to two, others are still doing great. One of the partnerships I’m in drilling in western Oklahoma, we each made a big profit of 8% before it was closed down. If it wasn’t for some tax breaks, it wouldn’t have made that much. It’s like being in high risk stock market, some you make, some you lose. This is a new frontier in Logan County, so only time will tell, but records haven’t been showing the best results so far. I’m really surprised they are still drilling as much as they are in the area.
Let’s just take the Johnson making 23 bpd, if it is on a 640-acre spacing and you have 160 acres mineral at 3/16, you would get a total of $31,481 before taxes per year. And if you only had 1 acre, you would get $196.76 minus taxes per year, so you would be lucky to get one check per year. But, you could have a nice first check.
One of the main obstacles for the mineral/royalty/property owner in every State is the Supreme Court Justices. I don’t know about Oklahoma but here in Texas we have the best ‘Supreme Court Justices that Oil Companies money can buy’. Until that changes we (mineral/royalty/property owners) are going to be trampled on even more. The Texas Supreme Court has already said that the mineral owners are on our own. In short we will not be getting any help from our Texas Supreme Court. I’ll bet Oklahoma mineral owners are treated the same way. I think I have read R. W. Kennedy say about the same thing about North Dakota State Supreme Court. It’s not right for mineral owners to be treated this way by our own Supreme Courts.
Supreme Court loves nice trips, fishing and hunting trips, Christmas presents, etc. Wonder why the land owners don’t have rights. Just go to RRC or any other state with a few $100 and you can get your order walked right through. Otherwise it’s in a basket that they have been too busy. Justices went out with the six shooter. Now I know why the government purchases all our bullets.
I want to thank Virginia, Ron McK, Clint and others who have really been helpful the past 3 months as I launched a very steep learning curve. I was a phone call away from selling off my royalty interests in Logan County.
Best wishes as you all plan the ideal country to live in. Maybe Mr Wilson can design a Flag, write a National Anthem and become Poet Laureate.
Hope they suck the Mississippi Lime dry under Logan County and then go for the Woodford.
I am scared. Why do they need all the ammo to protect us? I’m not trying to take control of anyone and everyone has their rights to believe what they want. But, something is wrong and I’m not sure who is to blame, but someone isn’t telling us the truth. And it’s not just the oil company. I just hope that America can stay free since we have lost so many of our young people trying to keep us free.
Virginia, never forget that everybody has a brother-in-law who needs a job, even judges. When people stop working for the state oil and gas regulatory agencies, or federal for that matter, who do they go to work for?
You are right, let’s do background checks on the people in the White House. Guess it doesn’t do any good to own guns if you can’t get the bullets or reloading supplies. Forget the licenses as you don’t have a way to qualify. Now the oil companies are selling us out. We have been fighting the war, now China is going to buy their oil. Why didn’t China go fight their war? And Chesapeake sold a big share of their wells to China and moved over 1,500 Chinese people into the small town of Woodward, Oklahoma. Now I hear China has purchased a lot more good wells in most of the other states. I’m getting scared.
If I didn’t have a few bullets for my 9 mm I wouldn’t be able to qualify for my licenses. Look at who owns the oil wells in America. Also, the wind turbine companies are all foreign owned. They set up a company in the USA, but they get their money and orders from a foreign country. Yet our government is giving billions to these companies while they are putting our companies out of business.