Replies to This Discussion

Permalink Reply by j garrett on October 9, 2009 at 12:24

You have to have several million dollars for your share of the well costs and an operator that'll let you do it. Doubt you can find one.

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Permalink Reply by Phillip Briggs on October 10, 2009 at 6:18

Like J Garrett mentioned, if you have several million dollars, sure it's a great deal. But, if you have several million sitting around the house, why not just hire a petroleum engineer, rent a drilling rig, and do it all yourself? Then you could either reap 100% of the profits after production costs, or sell assignments on the well. Logically, there's little reason to sell anything, once you have the well in production... just like selling minerals... Why?

I'd love to drill and own my own well. I have enough land and unleased minerals... alas, my liquid assets aren't enough. If I 'did' get the well drilled, and tied into a pipeline, I wouldn't sell any portion of it.

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Permalink Reply by BirdDawg, plain ole' idiot on October 10, 2009 at 16:58

Anti up. Pay to play.
Sorry, lethal, this may be the most ridiculous discussion ever.

Unless you have enough money to burn several wet elephants. And you are willing to lose your money.

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Permalink Reply by Grillin' - MmmMmm on October 13, 2009 at 2:36

I'll give this one a shot. As others have mentioned, to participate in a well takes significant financial where-with-all! You would have to poney up your share of the well and also probably prove to the operator that you could cover any emergency. While these wells AVERAGE $7 million, lots of bad things can go wrong and increase that cost by 2-3 times (blow out, injuries, etc.).

Now, say you can do this, then yes your idea would work. You lease a portion of your acreage and retain the rest as a WI owner. Once the first well is drilled, you could sell your interest in the acreage and well. At any time, you can sell your mineral interests (versus just leasing them out). I highly recommend that you give serious thought/evaluation of the potential value of your minerals before ever entertaining an offer to buy them, though. This is a tough ball game and there are those who have played it for a long time, just looking for the newbie!

Bottom line: is it possible? Yes. Is it something you should do? I wouldn't recommend it due to the exposure/risks of being a WI owner.

Now you could go Unleased Mineral Owner and then sell your interests after payout. But why not just lease it?

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Permalink Reply by Jon Williamson on October 13, 2009 at 2:49

I agree with Mmmmarkkk on this one. If you want to be in the oil and gas business why not just get into the oil and gas business. In other words if you have access to tens of millions in cash, risk some of that money to make money. Your scenario makes no sense to me for a one time deal (drill my section, reap the rewards after).

Greed has your mind thinking irrationally. Don't worry, it happens all the time. Lease your minerals, go to the bank, and be happy! Unleased mineral owners take a huge risk.

Mmmarkkk i just noticed your name ends in kkk?

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Permalink Reply by Grillin' - MmmMmm on October 13, 2009 at 8:34

Oh Oh! And it starts with Mmm! Dang. This must be bad.

Not only am I a racist, but I also must be a Campbell's soup hater...remember, "Mmm good"?

And the middle is "ar". I must also hold deep grievances against pirates!! ar ar ar arrrr.

Now you'll fuel the fires of Jimmy Carter!!

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