Replies to This Discussion

Permalink Reply by Iris on October 5, 2008 at 14:58

I'm listening...Two Dogs what is a conservation unit?

Permalink Reply by Two Dogs, Pirate on October 5, 2008 at 15:14

A conservation unit is where they, the gov, defines the depths.

Permalink Reply by Two Dogs, Pirate on October 5, 2008 at 15:17

I was only using Zwolle as a reference point, it could have been Alexandria. Same holds true, save your upper and lower rights.

Permalink Reply by Snake Stewart on October 6, 2008 at 0:32

It still sounds like a gamble. If you top lease for $20,000 and it goes down you may get that 10% ,if they dont hold up & lease,that was refered to.( $2000 ) But what if it goes up ? That seems to be more likely in the shale plays so far, especially since the moneys arent compreble here vs the Barnett yet.Not to mention the fact that this is the largest N/G field on U.S.soil.Thanks for the input guys. This has been extremly informative.

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Permalink Reply by Skip Peel - Mineral Consultant on October 6, 2008 at 0:50

Snake, it's just a personal decision as to what bonus amount is acceptable. As recent events have made quite obvious, bonus offers go up and they go down. I used the $20,000 figure purely as an example. There are lease considerations other than bonus. Lease bonus offers do not go up forever. It's like trying to time the stock market. Even the experts can not do it.

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