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Permalink Reply by Linda Whatley on January 5, 2011 at 5:54

Henry,

 

I know everyone's situation is different, but that's exactly why I leased so early on.  I'm not a big risk taker!  Besides, my bonus money has been earning income since June 2008, plus I'm already receiving royalty checks.  Maybe those who decided to go unleased will receive more in the "long" run, but a "bird in the hand", as well as the time value of money, was more important to me.    ......  To borrow Jack Blake's slogan, "Long live the Shale howled Linda Whatley!!" 

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Permalink Reply by Aubrey C. Sanders, Jr. on January 5, 2011 at 15:15

The first well I had WI in with Fina paid out in 11 months. Currently invested in one

with Forest which has not paid out in 3 years but should do so this year.. Others have paid out in 9 to 24 months.

 

Every situation is different. I know of several that paid out in 4 to 6 months. I did not have good fortune to be in one of those. Yes, I tend to be a gambler, as many geologists are. This is not for everyone. Even in in field drilling you might get dry hole with producing wells all around yours. I have seen that happen in North Shongaloo-Redrock field a few times. I am very careful as to whom I participate with. As someone stated earlier some wells never pay out.

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Permalink Reply by Henry on January 6, 2011 at 0:46

And some operators are not the best to deal with.  In my survey, I hear from my WIOs, and there are more complaints about some operators than others.

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Permalink Reply by VSC DeSoto South on March 26, 2011 at 7:51

Mineral Owner compensation comparison:

This is a very basic question, if one only had  .5 acre in a 640 acre unit would it not be better to be a UMO vs a RO? I am not sure but for a smaller ownership, the 25% royalty woudl be minimal, where the UMO compensation shoudl be much more. What would the numbers look like in such a comparison?

Assuming all basic figures, and well has paid out costs::

Mo Prod of 1 bcf

$4 gas

.5 acre sole ownership

What would the compensation be for 25% Royalty (leased) Owner of .5 acre?

What would the compensation be for the Unleased Mineral Owner aka UMO of .5 acre?

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