Replies to This Discussion

Permalink Reply by Joe Frederick Bilberry on August 26, 2012 at 13:35

LOL, sorry for getting back so late. I'm sure that he mentioned to my sibling that time is running out to get the leases signed and in the system prior to budget cuts, etc.

Permalink Reply by Lerret on January 9, 2013 at 8:55

All leases are contracts. All terms are subject to agreement. The worst one you will encounter is lumped under the general heading of "Post Production Expenses".  I am seeing depleting wells where those expenses will eat more than half of your check.  Accept a lower royalty if you must but eliminate all such post production expenses, including compression , transportation, marketing and treatment.  It will eat you up in a low producing well and shale wells typically will start producing at limited quantities within 18 - 24 months.  I've seen a lot of check stubs where post production expenses were 50% of the check or more

Permalink Reply by robert edwards on January 20, 2013 at 17:23

i have seen the same.  old gas wells, 50 years and older, are not going to bring you the market rate in your pocket.

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