Louis
LouisAuthor

2 years ago

Odd increase in oil production

Block: D | Survey: J.H. Gibson | Abstract: 333

My family has long owned a non-participating royalty interest in Yoakum County, specifically, Section 333, Block D, Gibson Survey. Thanks to Mineral Answers, I happened to discover that two oil wells were drilled in this section: the first one, Frost 1H, a horizontal well completed May 20, 2019. The second, Frost 2H, also a horizontal well, completed March 2020.

I have been in contact with the oil company (Sloan Production); at first they resisted my claim on behalf of my family, but my grandfather and father (both attorneys) kept all records dating back to 1926, and Sloan is coming around and promised to send out division orders soon (we shall see).

My question, however, is about production. Frost 1H, as of April 16, 2021, had produced to date 24,240 BBLS. As of May 2021, that total (for it is a running cumulative total, so far as I can see) had risen to 31,678 BBLS.A nice increase,

Yet, as of mid June (I am not sure when the production numbers are updated on this website, but it seems to be mid-month) it had increased to 61,378 BBLS, an increase of some 30,050 barrels in one month (or, a thousand per day). I had even driven by the location in May (on my way to Ruidoso from Fort Worth) and took photos of the wells and storage tanks; I doubt they could hold that much oil.

Is that normal?  What exactly does "BBLS" stand for?

I will add that Frost 2H, a lesser well, rose from 630 BBLS in April 2021, to its current 2,768, also a significant increase.

It was on April 1st that I first informed Sloan of our mineral interest. I also, in a subsequent letter, said that if we had to resort to court, that I would demand an accounting. Could that be part of the equation? Could Sloan be amending its production totals with the State? 

Of course, I hope that the well is producing 1,000 barrels per day, if BBLS stands for a monthly production rate. Yet, it seems odd that this one well is an oasis in dry or low performing wells.

If you need more information, ask.







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