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Permalink Reply by king john on August 17, 2010 at 3:25

also les, should henry use the btu factor in his analysis?
kj

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Permalink Reply by Les Bamburg on August 17, 2010 at 6:01

KJ, the Btu factor should definitely be part of the gas price analysis.

Permalink Reply by Les Bamburg on August 17, 2010 at 6:00

KJ, the gross heating value does vary some (but not significantly) and because natural gas is sold on a thermal basis the GHV needs to be updated on a regular basis. How frequently the update will be determined by the offtake gas pipeline.

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Permalink Reply by adubu on August 17, 2010 at 6:41

les--on the report I get the Gross price includes the multiple of the BTU factor. At least that is how my one operator reports its to me (Sandridge Energy)--on stub it list the BTU factor for example BTU factor 1.065 and then the gross price (which is broker or what ever index contract pays based on times the 1.065-- it's already calculated and includes BTU factor in the gross price)

Permalink Reply by Les Bamburg on August 17, 2010 at 9:27

Adubu, that is the reason the Btu factor needs to be included in the information for comparing prices on a $/MMBtu basis. Otherwise the comparison is not apples to apples.

Permalink Reply by Chad E Ellis on August 17, 2010 at 8:36

The wells and other sales points are tested on a schedule set by contract and regulatory agency requirements. They are tested either Monthy, Quaterly, Semi-Annual or Annually. The frequency is normally set by flow rate with the higher flowing locations getting tested more frequently. Depending on the contract, any workovers or other material changes to the well will require a retest in between the scheduled tests. Also, any time there is a significant change in the normal results a retest will be scheduled to verify the results. These test results are monitored closely by all parties as a significant over/underpayment can accrue quickly!

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Permalink Reply by w.r. frank on August 16, 2010 at 2:07

GD and Adubu,

Please do not hijack the post. See Henry's post below. HE DOES NOT HAVE ENOUGH DATA TO CRUNCH! Keep it simple and send monthly gross royalty for Nov., Dec. 2009 and J., F., M., A.,,M., 2010. If your royalty doesn't go back that far, just pick up with the first check and go forward. Again, S, T, and R will be helpful, plus Henry must know the unit operator. You do not need to disclose your name, number of acres or $ amount of money you received.

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Permalink Reply by adubu on August 16, 2010 at 3:19

wr franks--- i m not hijacking post-- i m trying to help henry get more replies and data from every one who will--he needs more replies and data---GD wants to limit it to haynesville only---NG is NG

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Permalink Reply by adubu on August 16, 2010 at 5:11

GD---sorry we misunderstand each other -- I appreciate your replies and not questing your legal opinions-- no reason to delete your post on this threasd IMO--- I like Henry want as much data as possible and he can decide what to put in his spread sheet--- I am not attempting to get data cheaply-- I am trying to help and learn--- yes I can be taught-- I also have a Doctoral degree and still listen to the teacher -- I do not know everything--no reason for you to ergo out

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Permalink Reply by Sarah on August 17, 2010 at 20:32

GD, agreeing with adubu, please don't ergo out. I'm sure your posts were helpful. I know you deleted already but if you saved them first, maybe you can pm them to Henry? He probably would like to hang on to what you said.

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