Got a check in the mail yesterday from Red Rocks for the last four months. We’ll see if it’s steady every month or not…
If that is the first check for a new horizontal well, it will be your highest since it is for several months and is at the maximum production for the well. Horizontal wells do decline rather quickly in the first few years, but then level off and then probably live for a long time. If your Division Order had $100 as the minimum payment, you can change that to $25 by informing them on a new Division Order form.
They took over operations of the well in May of this year. It has been in operation for a couple of years.
Ah, then it should be steady, but declining over time, maybe offset by any increase in product prices.