I have interest in a well that was drilled by XTO. I am not happy with the royalties. What does the data in the well allowables block mean? This is from Sonlite. Is it what the well is choked to and producing or is it data on how the well is delivering product and playing out? As the gas prices rise the allowable goes down. Any reason for that? There is another well that was drilled on the same pad that goes under the section next to mine. It is producing at three times the rate. Also an XTO well. Is it possible that XTO is choking my well to get more production off the other well. I have no interest in the other well because my land is not in that section. 

WELL ALLOWABLES on my well

EFFECTIVE DATE END DATE LUW CODE LUW TYPE CODE ALLOWABLE ESTIMATED POTENTIAL CURRENT ALLOWABLE TYPE
07/01/2014 12/31/2014 617005 2 357 357 3
01/01/2014 06/30/2014 617005 2 486 486 3
07/01/2013 12/31/2013 617005 2 600 600 3
01/01/2013 06/30/2013 617005 2 791 791 3
07/01/2012 12/31/2012 617005 2 1457 1457 3
01/01/2012 06/30/2012 617005 2 6043 6043 3
07/01/2011 12/31/2011 617005 2 6043 6043 3

WELL ALLOWABLES on other well not in my section

EFFECTIVE DATE END DATE LUW CODE LUW TYPE CODE ALLOWABLE ESTIMATED POTENTIAL CURRENT ALLOWABLE TYPE
07/01/2014 12/31/2014 617344 2 1514 1514 3
01/01/2014 06/30/2014 617344 2 1941 1941 3
07/01/2013 12/31/2013 617344 2 3500 3500 3
01/01/2013 06/30/2013 617344 2 4289 4289 3
07/01/2012 12/31/2012 8302 8302 3
01/23/2012 06/30/2012 10238 10238 10238 3

Tags: Two, on, pad., same, wells

Views: 841

Replies to This Discussion

steve,

the louisiana department of natural resources(dnr) definition of allowable is:

"The daily rate of oil or gas that a well is permitted by state authorities to produce during a given period."

its not my area of expertise, but my guess is that the offsetting well is just a better one. 

jim weyland

Why would the state reduce a well's production? Why does it seem like the reduced allowable occurs when gas prices go up?

 

as they are produced, wells production decline, think of it like letting air out of a balloon, at some point there won't be any air left in the balloon.

the allowable at any point in time is going to be at or near to as much as the well can produce at that time.

i believe la allowables are set twice a year. note: there are many on this board way more familiar/knowledgeable, maybe one or more of them will add their knowledge.

The wells get a state DT-1 24 hour flow test twice a year.  The results of those tests are used to assign the allowable.  No two wells are alike so variance in performance even across short distances is common. 

Thanks, your answers make sense. Not that I like my declining royalties. I guess its time to drill more wells! 

Yes, it is and operators are beginning to drill more wells just not in your part of DeSoto Parish.  They probably need another 25% increase in price to make your area more economic.

What about Natchitoches parish? Any good news there? It has so much potential. Its right on the border of the Tuskaloosa trend and is in the Haynesville shale.  

Steve, Natchitoches Parish is, geologically speaking, a complicated area.  The southern extent of the Haynesville Shale stops in north Natachitoches on the northern and northwestern flank of Natchitoches Island which is an upthrust dome.  The generally consistent stratigraphic column dipping south from NW LA gets faulted and folded along the edge of the Island.  I am told that the same thing happens on the south side of the Island for the S LA stratigraphic column.  At the moment the only inkling of possible exploration activity of which I am aware is by XTO forming Hosston Units in the San Miguel Creek Field in NW Natchitoches Parish.

Thanks. My Dad tells me about a big oil field in Black Lake. The flaring of gas would make a light that could be seen hundreds of miles away. They plugged during WWII because they thought it was a beacon for air attacks. 

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