Replies to This Discussion

Permalink Reply by Snake Stewart on July 24, 2008 at 10:39

The CEO's of various companies in this play have said that these wells could produce for up to 50 years. That being said they would of course be out of the XXX monster stage of production but producing none the less.

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Permalink Reply by Theunknownquantity on July 24, 2008 at 12:19

I've perused some of the well production data on Sonris Lite recently. Production seems to drop off a good bit within 6 months.

I will add that I have not had time to conduct more research, but intend to in the near future.

If I find significant information, I will try to repost my updated opinion.

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Permalink Reply by Randy on July 26, 2008 at 6:35

Production will drop sharply after the first few months of production and then level off to a plateau, sometimes half of previous volume, for the life of the well.

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Permalink Reply by herefordsnshale on July 24, 2008 at 12:09

If they produce the kinds of results predicted, they won't have to produce long. Just a few years and I would have more money than I could ever spend!!!!! And I don't have any kids so no need to worry about leaving anything to anyone!!!!!

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Permalink Reply by nicole on July 24, 2008 at 16:02

Hereford--

If you want to adopt me and leave me what's left of the royalties, that will be just fine.

:)

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Permalink Reply by herefordsnshale on July 25, 2008 at 12:11

I KNEW SOMEONE WOULD SAY THIS! I couldn't resist the post though, we have to have a little fun. Unfortunately I don't think I could adopt anyone, most of you here are probably older than me and that would be awkward!

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Permalink Reply by Shaq on July 24, 2008 at 12:58

I care less about how long and more about how much.

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Permalink Reply by OilPro on July 25, 2008 at 12:15

I'm with you, Shaq. I'd love to know about how much (at say, 20% royalty, to be conservative) a reasonable royalty payment per year might be--at least for the first year or two.

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Permalink Reply by alleyboy on July 26, 2008 at 1:09

Natural Gas Royalty Calculator
\This conservative since you will surely sign for 25% royalties and the well could conceivably produce twice as much.
You have specified 1 acres included in the pool containing 640 acres

The calculations below are based on a royalty offer of 20% and a price of $12.00 per Mcf on a wellhead producing 8.50 MMcf per day.

Total Daily Wellhead Value: $102,000.00
Your Share of the pool is 0.00156
Daily Income From This Well: $31.88
Weekly Income From This Well: $223.13
Monthly Income From This Well: $937.13
1st Year Income From This Well: $11,602.50

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Permalink Reply by Randy on July 26, 2008 at 6:34

May want to use 'wellhead' pricing on that gas sir.

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Permalink Reply by Jody Robertson on July 25, 2008 at 15:29

Nicole,
I read some information in regards to the Barnette shale and there was a well that was producing to date for 27 years. Look into the matter if you have some spare time.
Jody

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Permalink Reply by herman on July 26, 2008 at 4:03

We are being "held by production" from three Cotton Valley wells drilled in the 80's and early 90's that have dropped some in production but still produce. These were not huge wells when new. We almost wish we weren't getting those small checks. If there was someway to get out of those and redo it would be great. We can't complain tho, the checks have been handy all of these years. If these HS wells produce for that long everyone will have plenty of bread and milk money.

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