BPO, APO1, APO2, OMGWTFBBQ?

OK, I get that BPO=Before Pay Out and APO=After Pay Out.

What does that really mean?

My division order lists

BPO = x
APO1 = x
APO2 = 0

The percentages seem right, but what's the meaning of before vs. after payout? BPO and APO1 are the same in my case.

And what's APO1 vs. APO2?

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Permalink Reply by awharris on October 1, 2010 at 8:25

Yep, in a nutshell...but I would amend that to "the costs of drilling, completion and SOMETIMES lease operating and other ongoing expenses".

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As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More

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