Does anyone have any information on what the going rate on a SWD well (non-commercial) around Pecos?
I was told .10 a barrel and that seems low to me. I have also heard closer to .50 a barrel around the Coyanosa area, but not sure that is true. Does it vary that much based on the area?
I have done several searches and have not found any current information.
Thank You
I don't have any experience with current pricing, but I know the Permanent University fund uses $0.10/barrel in its price schedule. (You can google the information for that schedule-it is a large document but covers their pricing for lots of things like right of way, etc.). I was offered $0.05, and mentioned the PUF amount and the offer quickly agreed to $.10. I chose to not do it for I would have had to carve out 40 acres from a current lease reup, and felt if they hit a well it would pay better. Also, I believe several years ago, I received a proposal from a company specializing in SWD, and I think it was for a higher amount, but frankly, I was very new to my uncle's estate business, and declined since I didn't know anything about them. (still don't)
Does anyone have any further information on rates? We were just offered 5 cents per barrel also.
I've looked at a lease arrangement that had a total of 10% of the gross proceeds. This included water injected downhole, skim oil, and possibly the sale of water.