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Permalink Reply by Skip Peel - Mineral Consultant on February 1, 2015 at 3:37

Many wells produce a combination of hydrocarbons.  Generally speaking the deeper the formation being produced the more gas prone.  A recital of all the possible combinations is too lengthy for a GHS reply box.

The current interest in Claiborne Parish is likely related to the Cotton Valley group of sands.  Or possibly other formations in that general depth range - Hosston above, Bossier/Haynesville below.  Wells producing from those formations in that area would be expected to flow a combination of natural gas, natural gas liquids and condensate - referred to as "wet" gas.  The liquid portions of the production stream can make the wells commercial even when natural gas prices are low. 

CONDENSATE

A low-density, high-API gravity liquid hydrocarbon phase that generally occurs in association with natural gas. Its presence as a liquid phase depends on temperature and pressure conditions in the reservoir allowing condensation of liquid from vapor.

NATURAL GAS LIQUIDS Components of natural gas that are liquid at surface in field facilities or in gas-processing plants. Natural gas liquids can be classified according to their vapor pressures as low (condensate), intermediate (natural gasoline) and high (liquefied petroleum gas) vapor pressure. Natural gas liquids include propane, butane, pentane, hexane and heptane, but not methane and ethane, since these hydrocarbons need refrigeration to be liquefied. The term is commonly abbreviated as NGL. Your lease covers both.  I suggest that you read it carefully.

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Permalink Reply by Eric Polansky on February 1, 2015 at 3:55

Wow thanks for the info. Yes sir, I read it , states that it covers both, I guess that's what strikes the question how do they pay out for both and or separate the two natural energies from one hole ? Oil% and NG% ?

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Permalink Reply by Skip Peel - Mineral Consultant on February 1, 2015 at 4:16

You are paid a percentage (your royalty fraction, whatever it is) of the production on both the liquid and gas that flow from the same wellbore.  Both gas and liquids are metered.  Your monthly royalty statement will should volume of both and the price.

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