We have mineral rights in area noted below. Drilling started about 3 years ago and produced great royalties for the first 2 years. Over the last year the royalties have been on a rather large decline from the first 2 years. I understand that wells produce less over time but if anyone has any insight as to what we can expect in the future I would appreciate your insight. Will the output continue to decline or are we being affected by the market conditions. Also, It it possible that the well will be drilled deeper with a new mineral lease and bonus?
709.3 Arces, more or less, out of the Mary Cogswell Survey, A-144 and the John Oethkin Survey, A-369 in Gonzales County Texas
welcome to shale plays! wells decline 80% in the first two years, factor that in with oil prices then u have much smaller checks. Depening on ur lease form as to whether or not your will get another lease at a different depth. If the operator retained all depths in your lease you are most likely held to the existing well(s) for the life of that well. Hope this helps…
Phil I am assuming it is the EOG #177-32117 well. I would think it is due for a refrac shortly. Eog typically does not lease unless they get all depths so as stated by others, I don't believe you would get another bonus. It shows on rrc to still be producing decent amounts for being drilled several years ago, not too mention it has produced 1.2 million b/o as well as a 1.5 bcf. EOG is a great company and having them as the operator is a bonus in itself due to the amount of sand they can put into the EF.