Oil & gas production on an observation well?

[NativeDancer]

Good Afternoon,

I have a relative that inherited mineral rights from a deceased family member in 2019, and I have been helping them review transfer order and division order paperwork received from an O&G operator for wells that the operator mistakenly did not transfer into my relative’s name back in 2019.

One of the wells listed is categorized as an observation well, which as I understand it, is used to measure water quality or groundwater levels. Therefore, I expected the observation well to be a non-producing asset. However, I looked up the production history for this observation well, and it shows production of both oil and gas over the past several years.

That said: Is it possible for observation wells to also produce, or could the information I have found on the well be an error? Thank you in advance for any insight!

[M_Barnes]

If you post the state, county and acreage description and name of the well, folks may be able to help you. What started out as an observation well may have not stayed that way.

[NativeDancer]

Certainly! The well data is below!

APOLLO 2-5 MONITORING WELL Section: 2, BLK: 51, ABS: 7, T & P RR CO SURVEY; Reeves County, Texas; API: 4238938178

[PeteR]

Hi NativeDancer, the RRC lists production by RRC lease number and not necessarily by individual wells. The RRC lease 42919 also counts five other producing wells.

[NativeDancer]

Ahh, understood. That is helpful, thank you! I wonder why the operator included this well in the Transfer Order with an assigned Division Order number if it isn’t producing?