I have a lease with XTO and our roylaties were pretty good until the last past couple of months. I want to know why they have cut the production down. They have cut ours down but there are other wells in this same area and they have not cut their productlion. They have shut down the flow of our national gas. Can anybody help me with this??
Oil and gas production declines quickly. After the well is fracked, the well might have been done 1500 b/d but six months later, the well head pressure could be down to 200 psi or less and production down to 100 b/d. This is typical for a bakken well. At this stage, the well operator is trying to kill the well so a pumping unit can be installed. The next reason for reduced production could be the lack of resources to get the oil to market. ND is now pumping 600,000 b/d. Some roads were closed down due to spring break up too. Thus they could not ship out oil. As for gas, it to declines like the oil does. Also, the gas company shuts down from time to time for repairs and maintenance. I have seen the gas company down for as long as 2 weeks. The only option than is to flare the gas. The last possible cause, is the low oil prices. The oil company could be reducing production to get oil prices higher.
Our gas wells have been fracked for over 5 years now and were pumping good then all at once they are not produceing much at all. We have 4 wells and they have cut the production back on all of them. Is it because of the natural gas pricing or now or is due to supply and demand?
Ms. Carver, here in Texas most gas wells decline pretty fast and you are correct that supply and demand plays a large part of how much the operator produces the well. I have been hearing about underpayment by Chesapeake, if your lease is with them , you might check the production on the check stubs. There was also a court case where the meaning of cost free was defined that the lessor/mineral owner does not have to pay for the well and not that the mineral owner/lessor does not have to pay for gathering, compressing, dehydrating, seperating and marketing the gas, which some people weren't being charged for before, and now they are.
Were there any fracks in the area? Sometimes, when they frack a well nearby, the fracturing of the shale goes to far and communicates ( the fracked well breaks into a near by well) and can destroy a good well nearby.
r w kennedy said:
Ms. Carver, here in Texas most gas wells decline pretty fast and you are correct that supply and demand plays a large part of how much the operator produces the well. I have been hearing about underpayment by Chesapeake, if your lease is with them , you might check the production on the check stubs. There was also a court case where the meaning of cost free was defined that the lessor/mineral owner does not have to pay for the well and not that the mineral owner/lessor does not have to pay for gathering, compressing, dehydrating, seperating and marketing the gas, which some people weren't being charged for before, and now they are.