What are my options for liquidating the working interest in a well that is a losing proposition? This was an inherited well that pays us profit of about $1000 a year, while costing us at least double that for the working interest expenses. It is a very old stripper well pair that have virtually no hope of vastly increased production. I have talked to a production company representative a few months ago and he said he would pass along our request, but told me to not get my hopes up for a prompt reply.
Believe it or not, there are companies that buy money losing working interests. Not sure why, but they do. If you put in a Mid-continent energy exchange auction, typically, somebody will buy it for a small amount.
Unfortunately, there are some Operators out there who make money off of the operations and will prolong a well as long as possible, even if the other WI owners are losing money. Maybe they are keeping it going to hold acreage, or maybe they are just making money off of the other owners.
Under most Joint Operating Agreements, you can quit the well by pre-paying your share of the abandonment costs. Read your JOA and follow the procedures in it. Send all correspondence Certified Mail and state your intentions clearly.
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