I have a small mineral rights interest in Naylor Jones Unit 40 in Mc Mullen County Texas. According to our land man the first well on that unit should begin producing within 30 days. I have gone to the Texas Railroad Commission site and can see the well and others in the area. To get an idea of potential production rates I have looked at the Production Data Query reports of 2 very nearby wells. The wells have different API numbers but have the exact same production numbers per month. Am I going about this the wrong way? My other question is when are Division Orders normally sent? Before production starts or after? Any help is appreciated.
Are both those wells in the same unit? For an OIL well(s), the posted production numbers (on TRC site) is for the WHOLE UNIT and not each individual well (in other words, all wells in a single unit with show the same production numbers, even though each well will have it's own API number).
Division Order normally sent after about 4 months of production +/-. Operator is normally allowed about 90 days confidentiality, then following months allowed 30+ days to report. You'll get first check around the 6th month of production.
For an EOG well in Gonzales County, production started in January and I received the division orders in late May with my first check in July.
Thanks for the replies. That answers my questions. I appreciate your help.
Hi, Mark -
I looked up your well and two of them to the East. You can download the data I could come up with via this link: https://www.hightail.com/download/ZUcyWUh1dzgwMEY3czlVag
Like Oldoak said, the Units will all have a single common tank battery for all of the wells in it. The reported production, graphs and Price Data will reflect the Unit's total monthly production.
The individual wells, of course, will have their own Completion Reports with their Initial Potentials (IPs).
The Naylor Jones Unit 48W Well No 3H was completed November 24, 2013 and tested at 2,622.0 BOPD and 1,460.0 MCFD; The Naylor Jones Unit 48W Well No 4H was completed January 7, 2013(?) at 1,290.0 BOPD and 1,527.0 MCFD.
Those are pretty good wells, but note in the Price Data information I included that as of June 2014, the two wells had settled to a total of 316.1 BOPD and 617.5 MCFD. That's still a pretty good amount of production, but all Eagle Ford Wells settle pretty steeply in the first year to year and a half.
That's always disappointing, but you have to remember that they will stay there for about 40 more years.
Hope this helps -
Charles
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Division Orders are sent after production has commenced.
Thanks Charles. All the info helps me understand the process.
Charles Emery Tooke III said:
Hi, Mark -
I looked up your well and two of them to the East. You can download the data I could come up with via this link: https://www.hightail.com/download/ZUcyWUh1dzgwMEY3czlVag
Like Oldoak said, the Units will all have a single common tank battery for all of the wells in it. The reported production, graphs and Price Data will reflect the Unit's total monthly production.
The individual wells, of course, will have their own Completion Reports with their Initial Potentials (IPs).
The Naylor Jones Unit 48W Well No 3H was completed November 24, 2013 and tested at 2,622.0 BOPD and 1,460.0 MCFD; The Naylor Jones Unit 48W Well No 4H was completed January 7, 2013(?) at 1,290.0 BOPD and 1,527.0 MCFD.
Those are pretty good wells, but note in the Price Data information I included that as of June 2014, the two wells had settled to a total of 316.1 BOPD and 617.5 MCFD. That's still a pretty good amount of production, but all Eagle Ford Wells settle pretty steeply in the first year to year and a half.
That's always disappointing, but you have to remember that they will stay there for about 40 more years.
Hope this helps -
Charles
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas