Replies to This Discussion

Permalink Reply by sesport on February 15, 2010 at 12:06

David - Did you also notice that the date on the change in the size of the choke corresponds with that drop?

80)

Permalink Reply by David on February 15, 2010 at 12:44

Yes. I am simply trying to understand, as it showed no production in November, yet we have been paid on November production.

Permalink Reply by Les Bamburg on February 15, 2010 at 13:30

David,

The initial LUW code was for a gas lease. The revised LUW code was for a unit. The code was revised because the section has been unitized.

The November and December production data may have some issues so recheck at a later time.

The allowable has remained almost unchanged (9019 vs 9105). Exco appears to have opened the choke some once the well produced for a few months which is reflected in the lower flowing pressure. The well still looks strong.

Permalink Reply by sesport on February 15, 2010 at 13:48

Les - Now my curiosity is piqued out of general interest. IF, as you say, there were/are production data issues, how is it that David received payment? ( I'll understand if this is out of your field, you're not really the "bookkeeping" type. lol)

Any idea what kind of "issues" these MIGHT be (purely speculative, of course)?

Also, do you foresee it becoming standard practice for operators to open chokes after a few months?

Thanks for your help! 80)

Permalink Reply by Les Bamburg on February 15, 2010 at 19:11

Sesport, I just find that production numbers for the most recent 1-2 months in Sonris and the Texas equivalent can be somewhat incomplete. This does not impact royalty payments but rather just information reporting.

I believe operators will gradually open chokes over a 1-2 year time period as flowing pressures decline so they should be at near full open as the flowing wellhead pressure is close to the pipeline pressure. Of course they may need to choke the well again when switching to a low pressure gathering system.

Permalink Reply by sesport on February 15, 2010 at 19:22

Okie-dokie. G'night and thanks again. 80)