Production Potential

Using information available through the Texas Railroad Commission I’m trying to understand, as a mineral rights owner, how to assess (without getting lost in the engineering minutia) the potential for oil and gas production of a particular area using information from recently completed nearby wells.

Am I correct that that information is contained on Railroad Commission’s Form W-2, with the pertinent part of that form located under the “Initial Potential Test Data” category, with its 2 sub-categories of “Production During Test Period” and “Calculated 24-Hour Rate”? In those 2 sub-categories is the pertinent information the “Oil (BBLS)” figure and the “Gas (MCF)” figure?

Is this the best way for a non-engineer to determine, in a simplified way, the possible potential of production in nearby areas before going to the next step of hiring a professional opinion?

If yes, in general, what would be considered poor, average, good and spectacular figures for initial oil and gas production?

Any additional thoughts and advice on how to make an initial assessment would be welcome.

Completion forms are not simple to figure out - data is not black and white. Test rates for oil and gas (and water) will vary widely based on when the test is done. And issues like pumping or flowing, pressures, oil gravity, lateral length, frac approach, etc all figure into the IP test rates.

One of the biggest things to remember is that the test rate is NOT the rate a well will produce at for an extended time. The type of wells you are looking at in these "shale plays" will start out at one rate and then decline 70 to 90% over the next couple of years to a more stable but MUCH lower rate.

You can pull data and get an idea of what the potential is in your area, but I hate to say that you will have to talk to an O&G expert (geo and/or engineer) to decipher the key data and give you a better idea as to what is happening in your area