Today I found out that the Whitaker 1H well in Leon County is now producing. I have a hard time understanding how to interpret the production numbers. It shows that part of the month of February code 01 was in place, then code 02 showed production.
I would assume it is not possible to tell how the well is actually producing given the limited information on the TRR website and the lack of a full month of data given BOTH codes 01 and 02 were both posted in February.
Any help understanding this information would be appreciated.
Gas Well Gas - disposition code 01 is Lease or field fuel use and code 02 is volumes into Transmission Line. Unless your lease specifies that royalties are paid on lease use, then you will not be paid on the 01 volumes. Here is link to RRC disposition codes for Oil wells and for Gas wells. Disposition Codes
2 Likes
Indeed. Thanks for your response. I feel I cannot interpret the actual monthly production numbers because we don’t know how many days of February it was in code 02. Could be a day. Could be 27 days. Given the lack of information I feel we don’t know what the production for the 02 is like at this time.
Since the well was producing in January, you can assume that it was a full month of production. The gas leaves the premises and is not stored.
All of January was 01. February was both 01 and 02.
Because February was both 01 and 02, this is why I believe I don’t have an accurate read of the yield.
TRR website does not designate which day of the month 02 began.
I think the well is still in a test state. Mitsui has not yet reported any gas sales via the CONG website.
Alan. This is interesting. I’m trying to figure out why they report 02 on the RRC website if they have not made any sales yet. Thank you always for your expertise.
Our leases essentially state that oil and other hydrocarbons “saved at the well …or gas, including casinghead gas and all gaseous substances produced from said land and used off said land…” all being paid (the royalty percentage) at market value. We also have a no cost clause.
Do the foregoing posts mean that I should check both the TRRC production figures in addition to the operator’s Revenue ACH Remittance Statements?
If yes, how do I get the TRRC production data?
Thanks JN
There were no sales reported for January because the very small initial volume was consumed on the well site. In February, gas volumes that went into the pipeline would have been sold. You really cannot tell how a new well will do until you see several months of volumes. The CONG gas sales reports are due by the 20th day of the 2nd month after production (i.e., April 20 for February production) and so are only now starting to be filed by operators. There is no absolute “starting date” for any month of reported sales as that is set in the contract with the purchaser. Many of those contracts run from the 25th of one month to the 25th of the next month - i.e., production over a month that is not a calendar month. The prices are averaged according to a contract formula.
The January 2026 production was small and used on site, so there were no sales to report. February production was considerably higher and the amount that went into pipeline (code 2) will have a sales price that will be reported into the CONG system sometime in the next two weeks or so.
TD and AH,
The replies are informative and helpful. We had some discussion on a family email chain where there was concern that the well was not performing as expected.
I have been under the impression that was reflected in what TD said… “you really cannot tell how a new well will do until you see several months of volumes.”
I was also informed by Mitsui owners relations that they are “still working on the well.” Which means we may be in an “on and off state” and that they may not be turning to continuous production at this point.
I would file this one under the “too early to know” category.
I greatly appreciate the insight this forum provides for me.
Alan - I’m somewhat new to following new production info. What is the CONG system and where do I find it?
The Crude Oil and Natural Gas System (CONG) is where oil and gas sales are reported to the Texas Comptroller of Public Accounts.
https://mycpa.cpa.state.tx.us/cong/loginForward.do?phase=check
1 Like
You don’t need to know the numbers they change all the time if u change one decimal it changes everything up and down the line. The oil companies have no incentive to underpay you. You’re lucky oil businesses haven’t been nationalized yet. Yet.
Thank you. I’m not concerned about being underpaid. I’m concerned about the timeline for rolling out the production. I want to know if production is slower at first due to having to deal with testing, treatment, pipeline capacity, etc. Trying to understand when we will be at full production.
It can take up to six months to get to full production as the frac fluid needs to come up the borehole and the production stream cleans up from having the extra water in it. Your production numbers will change over that period and then stabilize. You will get a peak production and then a normal decline due to the loss in pressure as the reservoir is produced.
2 Likes
I appreciate the response. I have gained a new understanding and a lot of respect for how complicated it is to create these wells and bring them to production. I will track the numbers and see where we are at towards the end of the year. Thank you again.
