Physically watch oil production?

Oil and Gas Leasing Help
1

Hi all,

I have a question: If you think you are not getting the correct payment from a lease, can you actually go to the well site and measure the amount of oil and/or gas that the well is producing? The reason I am asking is that a pumper told me several weeks ago that the well in question was producing 650 barrels of oil per day. But then we I got my mineral check, it did not reflect no where near that amount of production.

Thanks for you help,

Mary

2

Maybe the well pumps 650 bbl per day …but maybe it had some days of no production ? There can be lengthy downtimes.

3

Yes, I suppose so. So, you think I could watch it physically? Not sure how I would go about doing that, but, am willing to try. I am not too fond of oil companies! I do not trust them to be fair to the little man! M



r w kennedy said:

Maybe the well pumps 650 bbl per day ....but maybe it had some days of no production ? There can be lengthy downtimes.
4

I have little trust for them myself Ms. Hope. I think it would be impractical to go to the site and watch continuously for an entire month. I would like to ask you when you were told the well was producing 650 bbl per day? If it was a year or even 6 months ago, the well may not produce as much anymore.

5

Mary:

There are so many variables about the amount of daily production on a well. As stated earlier, downtimes on the well and the declining of production would be considered variables. I don't think it would be a good idea to physically visit the well site as gauging the tank(s) or waiting until the oil is actually removed from location might be the only ways to learn the number of bbls. It is very probable that you would be asked to leave the location due to insurance restrictions. There would be paperwork generated by the gatherer when oil is transported from the lease. If you could obtain access to this paperwork, that would be a more logical method of finding the amount of oil being produced.

6

Depending on the storage, gathering and transportation to the sales point, the situation may reflect not only the above, but also that of sales versus total production. Mary, you are paid on the sale of the crude oil, not necessarily the production. Also, depending on the water cut, the well may indeed produce 650 barrels per day, but may produce much less crude oil than what you have been told.