I have small tracts in two different CULs, one operated by Comstock, one by GEP.  The unit operated by Comstock has two LUW Codes, one for each section.  The Section that includes my acreage is much larger, and the allocation for "my" LUW is 50.95% and the other is 49.05%.  Comstock reports production on Sonris by LUW Code.  The production reported for the smaller section seems to consistently be greater - some months, 50% greater, that the production from my section, but the reported production from the two LUWs are not consistently allocated.  

This seems illogical to me.  How does this work?  Does the Operator have the ability to control which parts of the CUL are producing each month with valves on the various perforations?  

In the other CUL, GEP sometimes reports production under both LUWs, but sometimes they just report total unit production.  Why is this reported differently?

Inquiring minds want to hear from you experts.

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Replies to This Discussion

It's not the size of the section, it's the portion of the lateral lying in each.  What you need are the "perf letters" in order to confirm the percentage of perforated lateral that lies in each section.  It is a common development design to drill ~7500' laterals north and south from one or more surface locations in the middle section of three sections stacked north to south.  Without knowing the specific wells in your example, I can't tell if this is the case but it sounds as if it may be.  This usually results with approximately one third of a CUL producing from one section and two thirds from the other.  This design shows an operators intention to eventually drill the mirror image wells in the opposite direction which makes up for the short term situation of a lateral producing from only one half of a section.

As to your second question, please post the specific wells.

Comstock is 26-12N-15W, CUL for 35 12 15 and 2 11 15 (McCoy well)  251241

GEP is 2-9N-12W CUL for 35-10-12 and 2-9-12  (Hall well)                    249632

Re: McCoy

08/01/2019

616433

1

0

0

314736

0

0

DE SOTO

07/01/2019

616433

1

0

0

384886

0

0

DE SOTO

06/01/2019

616433

1

0

0

406789

0

0

DE SOTO

05/01/2019

616433

1

0

0

480899

0

0

DE SOTO

04/01/2019

616433

1

290293

0

0

DE SOTO

03/01/2019

616433

1

0

0

320475

0

0

DE SOTO

02/01/2019

616433

1

312641

0

0

DE SOTO

01/01/2019

616433

1

388079

0

0

DE SOTO

12/01/2018

616433

1

122943

0

0

DE SOTO

 

07/01/2019

 

618115

 

2

 

196099

 

0

 

0

 

DE SOTO

06/01/2019

618115

1

0

0

207259

0

0

DE SOTO

05/01/2019

618115

1

244814

0

0

DE SOTO

04/01/2019

618115

1

301538

0

0

DE SOTO

03/01/2019

618115

1

332888

0

0

DE SOTO

02/01/2019

618115

1

324752

0

0

DE SOTO

01/01/2019

618115

1

403111

0

0

DE SOTO

12/01/2018

618115

1

127705

0

0

DE SOTO

December thru April look as they should across both units.  May is when production totals diverge.  There should be two wells reporting under each LUW code.  It appears to me that production for one of those wells is dropped for May thru July.  Only LUW code 616433 reports August production.

How do those SONRIS production volumes coincide with your royalty statement volumes?  If your statement is accurate for volumes May thru July, then SONRIS may have missed the entry for one well but not the other.  If this is a SONRIS snafu, I think I can get the Production Audit section to correct it.  I'll look at the other two wells a little later.

on the Comstock well, I'm not yet in royalty payment status.  We are having "discussions" with Comstock over a lease issue.

So, basically, the fact that one section is larger than the other is irrelevant?  It is based on horizontal linear foot of pipe in each section?  For the Comstock well, the drill site is in 26-12N-15W, but with no production in Section 26, but the lateral extends through all of Section 35, but only a portion of Section 2.  So, obviously, Section 35 is getting a much larger share of the production than Section 2.

Thanks - as I typed this to respond to your info, it starts to make sense to me now.  But I still don't understand why the allocation of total production would not have the same % every month, and the reported production for each LUW in the McCoy well is not consistent.

I had to take a break and do something else so I am going by memory but the perf letters for both sets of wells were very close to 50/50.  The McCoy wells monthly reporting irregularities were obvious but before the divergence looked reasonable for the slight variation from a 50/50 split.  I have yet to look at the Hall wells.

Hall wells.  Considering the fact that 47.64% in in SUPP and 52.36% in SUI, these monthly production reports look okay.

LEASE\UNIT\WELL PRODUCTION

RPT DATE

LUW CODE

STORAGE FAC

DOC USE

WELL CNT

OPENING STK

OIL PROD(BBL)

GAS PROD(MCF)

DISPOSITION

CLOSING STK

PARISH

08/01/2019

617915

1

0

0

43229

0

0

SABINE

07/01/2019

617915

1

0

0

44033

0

0

SABINE

06/01/2019

617915

1

0

0

47401

0

0

SABINE

05/01/2019

617915

1

0

0

51782

0

0

SABINE

04/01/2019

617915

1

0

0

53122

0

0

SABINE

03/01/2019

617915

1

0

0

57975

0

0

SABINE

02/01/2019

617915

1

0

0

59609

0

0

SABINE

01/01/2019

617915

1

0

0

67969

0

0

SABINE

12/01/2018

617915

1

0

0

71660

0

0

SABINE

11/01/2018

617915

1

0

0

77936

0

0

SABINE

10/01/2018

617915

1

0

0

91363

0

0

SABINE

09/01/2018

617915

1

0

0

101610

0

0

SABINE

08/01/2018

617915

1

0

0

119132

0

0

SABINE

07/01/2018

617915

1

0

0

143840

0

0

SABINE

06/01/2018

617915

1

0

0

153834

0

0

SABINE

05/01/2018

617915

1

0

0

178932

0

0

SABINE

04/01/2018

617915

1

0

0

186600

0

0

SABINE

03/01/2018

617915

1

0

0

211120

0

0

SABINE

02/01/2018

617915

1

0

0

205449

0

0

SABINE

01/01/2018

617915

1

0

0

232644

0

0

SABINE

12/01/2017

617915

1

0

0

223756

0

0

SABINE

11/01/2017

617915

1

0

0

220657

0

0

SABINE

10/01/2017

617915

1

0

0

227890

0

0

SABINE

09/01/2017

617915

1

0

0

220222

0

0

SABINE

08/01/2017

617915

1

0

0

231237

0

0

SABINE

07/01/2017

617915

1

0

0

230569

0

0

SABINE

06/01/2017

617915

1

0

0

220823

0

0

SABINE

05/01/2017

617915

1

0

0

232077

0

0

SABINE

04/01/2017

617915

1

0

0

222324

0

0

SABINE

03/01/2017

617915

1

0

0

227886

0

0

SABINE

02/01/2017

617915

1

0

0

205013

0

0

SABINE

01/01/2017

617915

1

0

0

228279

0

0

SABINE

12/01/2016

617915

1

0

0

229815

0

0

SABINE

11/01/2016

617915

1

0

0

222039

0

0

SABINE

10/01/2016

617915

1

0

0

223653

0

0

SABINE

09/01/2016

617915

2

0

0

226145

0

0

SABINE

08/01/2016

617915

1

0

0

1123

0

0

SABINE

 

 

 

 

 

 

LEASE\UNIT\WELL PRODUCTION

RPT DATE

LUW CODE

STORAGE FAC

DOC USE

WELL CNT

OPENING STK

OIL PROD(BBL)

GAS PROD(MCF)

DISPOSITION

CLOSING STK

PARISH

08/01/2019

617192

2

0

0

45581

0

0

SABINE

07/01/2019

617192

2

0

0

46599

0

0

SABINE

06/01/2019

617192

2

0

0

51325

0

0

SABINE

05/01/2019

617192

2

0

0

53829

0

0

SABINE

04/01/2019

617192

2

0

0

55873

0

0

SABINE

03/01/2019

617192

2

0

0

59876

0

0

SABINE

02/01/2019

617192

2

0

0

62119

0

0

SABINE

01/01/2019

617192

2

0

0

69432

0

0

SABINE

12/01/2018

617192

2

0

0

73791

0

0

SABINE

11/01/2018

617192

1

0

0

79922

0

0

SABINE

10/01/2018

617192

1

0

0

91173

0

0

SABINE

09/01/2018

617192

1

0

0

100750

0

0

SABINE

08/01/2018

617192

1

0

0

116971

0

0

SABINE

07/01/2018

617192

1

0

0

140380

0

0

SABINE

06/01/2018

617192

1

0

0

149063

0

0

SABINE

05/01/2018

617192

1

0

0

174252

0

0

SABINE

04/01/2018

617192

1

0

0

178708

0

0

SABINE

03/01/2018

617192

1

0

0

202136

0

0

SABINE

02/01/2018

617192

1

0

0

196947

0

0

SABINE

01/01/2018

617192

2

0

0

222554

0

0

SABINE

12/01/2017

617192

1

0

0

216630

0

0

SABINE

11/01/2017

617192

1

0

0

214807

0

0

SABINE

10/01/2017

617192

1

0

0

225213

0

0

SABINE

09/01/2017

617192

1

0

0

218014

0

0

SABINE

08/01/2017

617192

1

0

0

238427

0

0

SABINE

07/01/2017

617192

1

0

0

227157

0

0

SABINE

06/01/2017

617192

1

0

0

209099

0

0

SABINE

05/01/2017

617192

1

0

0

219067

0

0

SABINE

04/01/2017

617192

1

0

0

208689

0

0

SABINE

03/01/2017

617192

1

0

0

215690

0

0

SABINE

02/01/2017

617192

1

0

0

190827

0

0

SABINE

01/01/2017

617192

2

0

0

212794

0

0

SABINE

12/01/2016

617192

2

0

0

216621

0

0

SABINE

11/01/2016

617192

2

0

0

211945

0

0

SABINE

10/01/2016

617192

2

0

0

233875

0

0

SABINE

09/01/2016

617192

2

0

0

240458

0

0

SABINE

08/01/2016

617192

2

0

0

7944

0

0

SABINE

 

 

thanks, Skip

Skip:

One thing to mention in this above case is that there is an existing producing unit well in the SUPP (SN 243197; Las Ormigas 2 #1) which although mature production was not marginal in any respect at the time of the completion of the James Hall 2-35 HC #1-Alt (SN 249632) on 8/31/2016.  This production is "tilting" the production away from the ratios that you state above - we can derive the "implied" continued production of that well here (at least until another well is drilled which will foul a straightforward analysis - at which point only the meters on the wells would need to be accessed):

Prod. Month PP Unit Production LUW 617192 I Unit Production LUW 617915 Total SUI/SUPP Production SN 249632 - I Unit Allocation SN 249632 - PP Unit Allocation SN 249632 - Expected PP Unit Production (Ratio) "Implied" SN 243197 Production

8/1/2019

               45,581                43,229                88,810                0.5236                0.4764                              42,309                  3,272
7/1/2019                46,599                44,033                90,632                0.5236                0.4764                              43,177                  3,422
6/1/2019                51,325                47,401                98,726                0.5236                0.4764                              47,033                  4,292
5/1/2019                53,829                51,782              105,611                0.5236                0.4764                              50,313                  3,516
4/1/2019                55,873                53,122              108,995                0.5236                0.4764                              51,925                  3,948
3/1/2019                59,876                57,975              117,851                0.5236                0.4764                              56,144                  3,732
2/1/2019                62,119                59,609              121,728                0.5236                0.4764                              57,991                  4,128
1/1/2019                69,432                67,969              137,401                0.5236                0.4764                              65,458                  3,974
12/1/2018                73,791                71,660              145,451                0.5236                0.4764                              69,293                  4,498
11/1/2018                79,922                77,936              157,858                0.5236                0.4764                              75,204                  4,718
10/1/2018                91,173                91,363              182,536                0.5236                0.4764                              86,960                  4,213
9/1/2018              100,750              101,610              202,360                0.5236                0.4764                              96,404                  4,346
8/1/2018              116,971              119,132              236,103                0.5236                0.4764                          112,479                  4,492
7/1/2018              140,380              143,840              284,220                0.5236                0.4764                          135,402                  4,978
6/1/2018              149,063              153,834              302,897                0.5236                0.4764                          144,300                  4,763
5/1/2018              174,252              178,932              353,184                0.5236                0.4764                          168,257                  5,995
4/1/2018              178,708              186,600              365,308                0.5236                0.4764                          174,033                  4,675
3/1/2018              202,136              211,120              413,256                0.5236                0.4764                          196,875                  5,261
2/1/2018              196,947              205,449              402,396                0.5236                0.4764                          191,701                  5,246
1/1/2018              222,554              232,644              455,198                0.5236                0.4764                          216,856                  5,698
12/1/2017              216,630              223,756              440,386                0.5236                0.4764                          209,800                  6,830
11/1/2017              214,807              220,657              435,464                0.5236                0.4764                          207,455                  7,352
10/1/2017              225,213              227,890              453,103                0.5236                0.4764                          215,858                  9,355
9/1/2017              218,014              220,222              438,236                0.5236                0.4764                          208,776                  9,238
8/1/2017              238,427              231,237              469,664                0.5236                0.4764                          223,748                14,679
7/1/2017              227,157              230,569              457,726                0.5236                0.4764                          218,061                  9,096
6/1/2017              209,099              220,823              429,922                0.5236                0.4764                          204,815                  4,284
5/1/2017              219,067              232,077              451,144                0.5236                0.4764                          214,925                  4,142
4/1/2017              208,689              222,324              431,013                0.5236                0.4764                          205,335                  3,354
3/1/2017              215,690              227,886              443,576                0.5236                0.4764                          211,320                  4,370
2/1/2017              190,827              205,013              395,840                0.5236                0.4764                          188,578                  2,249
1/1/2017              212,794              228,279              441,073                0.5236                0.4764                          210,127                  2,667
12/1/2016              216,621              229,815              446,436                0.5236                0.4764                          212,682                  3,939
11/1/2016              211,945              222,039              433,984                0.5236                0.4764                          206,750                  5,195
10/1/2016              233,875              223,653              457,528                0.5236                0.4764                          217,966                15,909
9/1/2016              240,458              226,145              466,603                0.5236                0.4764                          222,290

Yes, Section 2 has a unit well drilled in 2011 that would be included in that LUW production volume.  The average for the three months prior to the new wells being turned to sales was ~9400 mcf.

Skip:

Based upon the rightmost column (implied production), it appears to be further along now - from 300 mcfd to 110-140 mcfd at current.

That could possibly be why there are new wells.  In the past we have discussed the fact that Comstock had taken well permits in a group of sections that were allowed to expire and then re-permitted for seven or more years.  I think Steve P. had a least one discussion on that.  However he also had the well with astonishingly slow decline also so I guess things even out.  :-)

So I have great hopes for the 2 Vine wells in 2-9-12,  The currently producing CUL was the one with the flat production decline for the first 12 months.  For the 2 wells now being drilled, on is in the Haynesville and the other is in the Bossier.  The Bossier is supposed to be particularly excellent in this area of northern Sabine Parish 

The Comstock well is also a CUL that had the saga of permits every 6 months for 3 or 4 years and they never drilled.  That well is in the Stanley area of DeSoto Parish, and it is in a large circle with either no HA wells, or a few scattered pretty low quality early wells.  The well in 26-12-15 (which is producing 35-12-15 and 2-11-15) looks like a pretty good well so far.  Of course, I have a very small parcel of minerals and its a 50 year old lease at 1/8th, so it won’t bring too much joy to the household.  But I’m thankful for anything I get.

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