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Permalink Reply by Two Dogs, Pirate on March 24, 2009 at 14:19

You need to go back and check all you figures again. Don't go by what newspapers say, check everything yourself.

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Permalink Reply by Grillin' - MmmMmm on March 25, 2009 at 1:58

When gas is bought and sold, it is priced in $/mmBtu. This is a heating value. When gas is produced, it is generally measured in cubic feet, a volume measure. A common measurement is MCF, which is 1000 standard cubic feet.

Generally, people have assumed that 1 MCF gas is equal to 1 mmBtu. That is an approximate conversion but it can swing wildly based on the liquid content of the gas, the percentage of heavier hydrocarbons versus lighter hydrocarbons, and the amount of non-hydrocarbon components (like H2S, CO2, etc.). It is also controlled by the degree of processing the gas has gone through. For instance, a wellhead volume could have a lot of liquids entrapped in the gas and have a BTU content of 1300. Then it is processed and the liquids are removed and sold, leaving just the lighter gaseous hydrocarbons. That treated gas would have a BTU content much closer to 1000. There are coalbed methane wells with BTU contents in the 900-950 range, again impacted by the fact that the gas is mostly methane but could also have some non-hydrocarbon gases that reduce the heating content.

When you get paid for your royalty gas (or your UMI gas or your WI gas, depending on your status), you should be paid on a mmBtu basis. The sales contracts for the gas are in mmBTU basis and that's what you should get paid on as well.

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Permalink Reply by Spring Branch,mineral owner on March 25, 2009 at 3:07

That was 713.4 million cubic feet of gas for the month, not per day. That was the total production for the month from the Sample 9 well.

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