Hi folks, I have a couple of acres on the Breedlove well 25, 025 14n 10w. It has only been producing since 9/17/10 but the last reported gas delivery has fell to 4109 with a flow pressure of 200. Is this deliberate or not? Thanks
Now that there is a well on most of the sections being held, is there a likelihood of ever getting to 8 wells per section?
Have you looked at this page?
It looks like production is declining steadily every month since it started producing. If they're playing games with the production, they're putting in a lot of effort to make it look unintentional.
Even if they are playing games with cutting back production, it's probably in your best interest for them to do so. Wouldn't you rather have them hold onto your gas when prices are low and sell it when prices go up?
The last report in May was around 125,000 MCF/month. With gas at $4, that's still $500,000 per month or $6 million per year.
In theory, once there's production on most units, drilling will slow until demand rises or production slows and it becomes more economical to drill. Even if demand doesn't go up, in theory, production in shale gas should decline fairly rapidly over a few years in each shale gas well.
If anything, the gas companies are probably going to be more eager to drill than a smart mineral owner would be. They're Wall Street/oil field cowboy types who are high rollers out for the quick buck. Instead of holding back and getting more money long term, they've got to make the quick buck.
I suspect that in a few years there will be a lot of drilling of additional wells in individual units, but it will be concentrated in the more productive areas. When your particular section gets more wells is anyone's guess.
I've studied the report provided by Mac Davis. The Mar 15 test result of 4109MCF/d on 19/64 choke is more in line with a tubing pressure of 2000psi. Look better?