anyone have leases in this area? Production cut more than half in the last few months. Just wondering if anyone has insight.
Cruce 1-25H? Production decline is normal for horizontal wells (and all wells). The decline on that well looks normal with no unusual glitches. If you mean royalties have declined, the prices of oil and gas have declined in the last few months.
M_Barnes that is the correct well. I am new to this so forgive my ignorant questions. Will production go back up or it is standard to keep declining?
Volumes will keep declining. Normal, like letting water out of the bathtub-which is what is happening. The operator is draining the reservoir.
If they drill infill wells, then you will get an increase in production - for a while. The operator has left room to drill those infill wells, but it may or may not happen.
Production on horizontals only declines the longer they produce. The only to way make up for the decline in payments that you were accustomed to is hope oil and gas prices rise dramatically or they drill a few more wells, which will be good for a few months and then have a dramatic drop off. Horizontal drilling has turned into a craps shoot, one just has to hope they drill your well when prices are high due to the rapid decline in production.
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