How To Read A Production Statement -- March 24, 2024

Locator: 46828B.

This well is tracked here.

The maps:

The scout ticket and production data:

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Reading The Production Statement

Wow, wow, wow -- a reader whom we will call Tucker just noted a new well on his / her monthly production statement. Tucker has never paid much attention with his / her production statements but with a brand new well, Tucker thought it was a great time to see if I could help him / her with reading / making out the production statement. So, this weekend, I will post some YouTube videos explaining oil production statements. 

This should be fun.

Okay, I've started taping the videos. 

These videos are very amateurish.

I may have a lot of this wrong, and all of this information can be found on the web posted by much more knowledgeable folks and much more professionally. I often use terms incorrectly, and I often round numbers, so take all of this with a grain of salt. I'm simply trying to explain to a reader how to read his/her production statement. 

I'm hoping to provide enough information -- right, wrong, whatever -- to get the reader started. 

Feel free to fact-check and re-run the numbers. 

Again, this is for one reader; it is not for the general audience. If in any way you think this might affect your own minerals, go to other sources for better and more accurate information. 

I think Clip 1 is the worse; I may re-do it.

Clip 2 is of the well itself -- where it's located, etc.

Clip 3 is probably the one the reader is most interested in -- how to calculate the decimal unit and how the decimal unit is useful.

So, here goes.

Clip 1:
Clip 2: There is an error in the spreadsheet that I produced for this video but that error has been corrected in the post and in clip 3 below. It does not matter with regard to what I was posting in Clip 2.


Clip 3: Note only major error in this clip. I stated that the 2560 acre drilling unit was two sections, one mile by two miles. In fact, a 2560-acre drilling unit is four sections, two miles by two miles or one mile by four miles -- both methods giving one four square miles of surface area and four square miles in the drilling unit.