Thank you! I begin to see how this works, for a professional anyway.
You are telling me some amazing things, I didn't know. I do believe everything you are saying..... It's a whole other world for me, and it sounds like your world....
So, are we agreed the best thing to do pay whatever, the $15k/acre to participate, for the best return? I don't have anything yet against any drillers or producers, and what do they have to fear from a miniscule owner, how could I interfere? If not now, never...I know enough about that.
If we can get her done, sign on for particpiation, before the forced pooling., we will find the $.. My sister is disappointed about the Croom well, having just moved to a new horse farm, after 30 years, because the silica in the soil around Carmel Valley, Ca.ifornia, gave the horses fragile bone syndrome. Eventually, these highly trained horses all went lame.) However, she has an instinct, and wants to go for it. We can get the money. According to you, there's no risk, if all your wells are producing, right? Or wrong?
Those wells of yours are gushing, seems to me. 500 per month per acre may not be huge money to you, but I can dine out twice a day in great restaurants, or have a full time gardener, or rent a little house, for that. So, now we know who has the family fortune here! Thanks for your help.
why has no one taken me up on my offer to be lashed to a rig? That would make the Tulsa papers. Maybe rigs aren't what they are in my imagination.
Haiku for Newy Well
Feller buncher on oil rig
forced pool drilling
Metal over earth.
chipper licking lollipop
Metal over earth
new motto...if you can't lick the frackers, join them and f**k them?
r w kennedy said:
Chipper, I am a force pooled carried interest in North Dakota. I have some decent wells. According to the rules in ND I receive a 16% royalty until my wells are paid off and a 50% actual cost of drilling and completing penalty are paid off then I receive 100% less cost of production and taxes. My best well should have produced 250k barrels of oil when the June numbers come out and still producing 8k-9k bbl oil a month. $400-$500 per month per acre is not huge money but it will keep me comfortable, with the $1500 per month from the 16% from the other wells and 100% when they eventually pay off. I can still participate in future wells if I feel like it and I would say conservatively there will be 20 wells per 1280 eventually although it my be my children who benefit.
As pleasant as it is to have more money, I also enjoy the fact that I have basically frustrated the purpose of the operator, they did not drill the well for the purpose of making a 50% profit on the cost of drilling and completing the well and making a paltry $4k per acre per well when the oil is worth $100,000 per acre or more from at least 3 produceable zones. I always knew there was oil there, I just wasn't liquid at the time of the drilling but I did the next best thing being non-consent under ND rules. They tell me I can still lease if I ever want to and I suppose I could if I ever lost my mind. Out of the wells I have an interest in, all will pay out. 5 were drilled when they didn't know the proper way to complete the wells and two more wells had mishaps and needed additional work increasing their cost, something to bear in mind if considering participation. I am not the operators favorite person.
Chipper, I hope you make some money off your minerals. No shame in doing so when it's going to happen anyway. You may even find a way [the rules being different in Ok.] to make more than they want to give you and give them a swift kick in the wallet which is the only place the lessee/operator ever feels any pain. I don't think they feel acute pain when the drill a dry well as it was something that was never going to be but if you can cut them out of the profit from acres under a good well, and any future good wells, it's like you took their lollipop. Good luck.