I know it can't be this simple: The Sawyer well and the Green well have both been drilled, Sawyer in production since July....Green being held back..
Looks like there will be several more wells drilled in the future, why is
participating in these new wells almost a "no brainer" ?????
George, in my opinion participating is gambling and I wouldn’t gamble any more than I can afford to lose. When you participate you bear your share of cost overruns. Even if completion is successful a well or wells that was plagued with problems and delays could have you reaching deep in your pockets long before your first royalty check arrives.
Thanks for the reply,
My thinking was that with all the success they are having in my area, I could be pretty well assured of production from future wells.
The overruns would be the wild card, but if they drill half a dozen more wells on the 640 acres it should spread the risk...
The "good news" is I only have 3 acres and they probably wont be drilling till the price stabilizes over $50 a barrel. The production from the Sawyer and the Green till that time, guessing 2017 at the earliest, should cover my share of the first new well..