royalties dropping when will it stop

we are wondering why our royalties continue to drop we have been receiving them for 3 years we were told after the first year it would level off and the second year would be half of what the 1st year but that has not been the case it is now about a third and it is continuing to drop at least 100$ every month some times more is it possible that they are not letting it produce or  is it really not producing just wondering if anyone else is dropping  we are in noble county

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Permalink Reply by G.H. on August 2, 2018 at 3:54am

I would agree with that right now for sure, but maybe in the future it will be used.  Right now, as you say, I am sure they are concentrating their time and resources on locking up as much of the acreage they have under lease as possible.

Permalink Reply by David Allen Lilly on August 1, 2018 at 1:10am

The production declines of the Utica are sharp and pronounced, coming sooner rather than later. Monitor the production of the well to verify, and also consider that things can and do change rather quickly in this business overall.

If there is one piece of information that I could pick to add to the matter it would be some way to quantify the choke on the well.

Joe,

Would you look at the production numbers on your royalty statement for us and please tell us if you are indeed suffering a steep production decline ?

Permalink Reply by Brian Powers on August 1, 2018 at 3:39am
I worked with some horizontal wells and many highly deviated wells, mostly in conventional reservoirs. I'm not aware of many re-stimulations in low-permeability shales, and I'm more than skeptical about the probability of success in most plays, for a variety of reasons.

There will be a number of competing ideas, such as surface compression, pipeline looping, choke changeouts, etc., before infill drilling or re-stimulations will be performed on a large scale, in my opinion.

Brian
Permalink Reply by Brian Powers on August 1, 2018 at 5:39am

OT -

I'm thinking about economical methods to reduce or remove pressure reducing restrictions, or "nodes" from the reservoir casing/tubing to surface gathering system interface. A well won't naturally flow if it's surface pressure is insufficient to overcome the pipeline back-pressure.

In many operator budgets, ideas have to compete with other options to be adopted. Ideas are planned and prioritized, then re-prioritized, in order to get the most bang for the buck. It's been that way before Titusville and Spindletop, and it will be that way until the last well is plugged.

Brian

Permalink Reply by Brian Powers on August 1, 2018 at 8:26am

OT -

I'm on the outside looking in now after 30 years on the inside of the biz.

I found this about zipper fracturing: https://dailyreckoning.com/2-new-drilling-techniques-that-will-shat...

This technique intrigues me, and if the upside is as good as the tables in the article, there would be much gained by this.

Brian

Permalink Reply by Brian Powers on August 2, 2018 at 3:42am

OT -

I enjoyed working with the academic types during my time in the industry. At best, they brought some budget money to help defray costs; They usually wanted most to co-author the technical papers and share the technology elsewhere. When things didn't work out, they were long in their ivory towers when I was left behind to explain away the failures. Success has a hundred fathers, and failure becomes an abandoned orphan very quickly.

Brian 

Permalink Reply by farmgas on August 5, 2018 at 5:09am

How viable is fracking the curve from the kick-off point to the landing zone point?  Is this a common method?   What would be the problems to do it?   Would it introduce problems like excess water into the normal flowback of gas/water?

Permalink Reply by G.H. on August 2, 2018 at 3:56am

Thanks for your input Brian.  Always good to get some info from someone who's worked on these wells.

Permalink Reply by farmgas on August 5, 2018 at 6:47am

What happened?

Permalink Reply by farmgas on August 5, 2018 at 7:00am

Thanks OT, are there any potential issues with fracking the curve now?  

Permalink Reply by Brian Powers on August 7, 2018 at 1:48am

There are a variety of formations between the aquifer and hydrocarbon zones, some might have the capability to produce, but are lacking oil or gas. The posters who suggest that fracing the curve would be fruitless are correct.

Brian

Permalink Reply by Vera Scroggins on August 8, 2018 at 2:33am

we are told a lot of things by the gas industry...has to be taken with a grain of salt...

royalties keep dropping and gas emptying out..of the wells...

maybe, industry is not releasing some of the gas since they don't have all the pipelines they need to transport...

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