I own some small acreage in Sec 6 3N 4W. Marathon completed 2 wells in the area around Dec 2019. Starfox and McCloud. Everything I could find on the internet from industry newsletters said they were good wells. Obviously, Covid came around at just the wrong time for this. In April, I got my first check on the wells. Very nice, reflecting sales made in Dec-2019 to Jan 2020. The bottom fell out in March. Got no more checks until about August. Since then, the checks have been up and down, but the oil portion sales shown on the checks have not been “considerable”, for lack of a better term.
At the start of the pandemic, I listened to some podcasts from a place called Macrovoices. Its a financial podcast by a former hedge fund manager named Erik Townsend. Its pretty technical, but they talked at length about oil during that time frame. He’d have guest experts, etc. They stated that modern horizontal wells could be more easily shut down during low-price periods, as opposed to older vertical wells. The consensus was that oil companies would shut down these wells where possible, waiting for better prices. Older wells that were shut down would not be easily recovered, leading to much higher oil prices when/if the economy fully recovered.
Obviously, my question here is whether to be optimistic that these wells may continue to be good sources of production in the future. Just wondered what some of the veterans ( M. Barnes- grin) think about the topic. You can probably hear the finger crossing going on right here. Thanks all.