Vertical wells are making a comeback
Thursday, September 17, 2015
It’s no secret that low commodity prices and the supply glut are pushing oil drillers to find cheaper ways to drill.
According to Oil and Gas Investor, producers are looking to old vertical wells for increased production from shallow play at a lower cost than horizontal drilling. Vertical wells also have a strong cash flow asset. In addition, vertical wells can be put into production within 10 days, compared to horizontal wells that take a month or longer to complete.
Baker Hughes data shows that the horizontal rig count fell by 2 percent while the vertical rig count rose 20 percent from early June to Sept. 4.
Via: Oil and Gas Investor > US Producers Turn to Vertical Wells To Sustain Oil Output
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How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.