Have we heard anything on the June 1-27H27 well in Love County? I read it spudded January 31st. Thanks in advance.
Kurt
Thank you Margo Mruphey!
Kurt…we’ve heard nothing on the June well…waiting and waiting.
I have mineral rights in Love County section 31-7S-2E. I heard they drilled in January but have heard nothing since. Does anyone have any information?
The completion report only has test data for a well, suppose to be for a 24 hour period after the well sort of normalizes after the initial test/production. Your royalty is only paid on the volume they actually sale. So you are only paid after each sale, usually 60 days behind.
Ok…thanks, Jay…so the numbers on the completion report don’t really mean much as far as royalty is concerned…I think I’m understanding that right…it’s all about the amount they sell…not the amount they produce…which could be quite different.
I hope someone can help me understand something regarding royalty payments…when payments are based on O&G production which is estimated and then the completion report gives higher numbers for production than the first payments were based on…how does that work? Does the company just start paying more royalties from the date of the completion report?
Thanks Bob and Jay. That helps. Bob, your comment about having a well go offline b/c of no gas pipeline capacity might explain why I’ve only received payments for oil but no gas yet.
Does anyone have any info on selling minerals to a company out of Houston called Echo Energy? This is for a relative of mine…thanks!
I have a related question about production and royalty payments. The first month of production was much more than what was shown on the completion report and then dropped about 60 percent the second month. Is this usual? I know the production decline rate of unconventional wells is steep the first year, but to decline that much from the first to second month seems like a lot. With the price of oil so low, are oil companies decreasing the choke size so less oil flows out? Are they storing a lot of oil and waiting to sell it after the price goes back up?
Yes this can happen, the well can go up and down in volumes based off of many factors. How is the reservoir pressure being managed, chokes can be adjusted to see how volumes are produced? Has there been any equipment or well bore failures recently? Any downtime on the well will result in lower production.
The completion report test really does not indicate anything of much value…it depends on when they do the test. There are many factors affecting month to month production…they could have had an equipment problem that shut production down a few days etc…I had a well that went offline for a while because there was no gas pipeline capacity yet.
Kurt…we’re hoping for a division order on the June well to come in the next few months.
I have heard that the Brewster 1-32H29 has recently been fracked and was wondering if anyone knows of any testing or production numbers or any other information on what is going on with this well.
Is there some way to find out what’s happening on the Day-1 well on 26-6S-1E? Last month the royalty payment was half of what it was the month before and this month so far there has been no payment at all. Is this normal? This well only started producing in Oct. 2014.
Margo, Go to the Continental website and set up info for royalty owners account. Continental post their info for checks on the 29 th of the month and mails them out after that, You should be able to see what you will be getting. They have posted checks for Day-1 Val Connell Carter
Val…I’ll go set up an account…thanks. We’ve had our checks set up for direct deposit and have gotten them before the 28th the last few months…so I thought this month must be different.
Does anyone have any info on or had any dealings with Echo Energy out of Oklahoma City?