Question about Gas Well

We have a small interest in the Escarpa Roja well. It is producing gas and we are receiving variable small monthly checks. It is designated as a gas well. Does this mean that oil production is not an option? Is gas usually captured first and then oil? I’m confused and trying to expand my knowledge as we keep getting more and more lucrative sale offers. I don’t want to sell but the expanding size of the offers makes me curious about what is planned for that area.

It can produce oil as well, although it is generally not a substantial amount and that's why is classified as a gas well. There are some corporate strategies in place because I believe there are some cost advantages when classifying a well as a gas well, but not 100% certain since I'm not an oil and gas accountant.

Thanks so much for your answer. Do you know if there is a website that would display the fracking going on or planned for that area?

Your question is similar to one I posed on the Loving Co Forum. You might check in to that while we both wait for answers.

Susan... my mom has a small (10 acre) interest in this same well. I believe the gas well designation was for permitting purposes only and it does not restrict production of oil or other such products. Most of the value of the well production has been from the oil (condensate) since the beginning although oil and gas have been produced simultaneously each month. The oil is mostly classified as product code 300 on your check stubs. There was a period when the gas was being flared (burned off) after an explosion at the refinery and therefore did not generate revenue for the owners. Mom has also received some pretty substantial offers to purchase her land and mineral rights. She doesn't need the money and the tax consequences for her would make it impractical to sell. Hope this helps.