Has anyone tried to work with an independent driller instead of the Top Tier oil companies to explore on your land? Can a mineral rights owner work alone with a small driller to explore or do you have to wait for a big driller to come calling?
MFrede:
The cost factor in financing such as endeavor would be more than the average mineral owner could afford. Just the miscellaneous expenses would be hundreds of thousands of dollars. The average horizontal well is costing in excess of 8 million dollars to drill and complete. This is why the most mineral owners lease to an oil operator or can elect to participate in a well.
Charles,
Thank you. I guess I assumed a deal would work similar, only that small independents look to lease smaller tracts of land because they don't have the clout that the Top Tier's have. It sounds like, from what you're saying, that the MR owner has to finance the operating expenses when working with them.
MFrede:
Unless you are independently wealthy, it is best to decide to lease your MR and get a great lease with good rates.
MFrede said:
Charles,
Thank you. I guess I assumed a deal would work similar, only that small independents look to lease smaller tracts of land because they don't have the clout that the Top Tier's have. It sounds like, from what you're saying, that the MR owner has to finance the operating expenses when working with them.