Does it mean that it’s real bad gas when you only get paid NG= price for 44K mcf and get 51 cents for 440K mcf under plant products? TIA!
plant products should be in gals. natural gas liquids.
Spur paid me $.51 per gallon as well. It’s not great, it’s not terrible. I think you’d generally hope to get about 30% of the price of oil for your NGLs. (42 gals x .51 = $21.42 per bbl for NGLs vs paid $80.51 for oil so 26.6%). Shrug.
Thanks so much. Learning more all the time. So it’s gallons. That’s why there is such a discrepancy in what they paid more for because that’s in mcf, correct? TY AGAIN@NMoilboy
Kinda long, caffeinated Friday.
In general the well will make a certain amount of mcf, it will get metered and go into the flowline to the gas plant. This is what gets reported to the state. That gas that goes to the plant is methane, ethane, butane, propane, etc. “Rich” gas.
That mcf will go to the gas plant. The will process it. Lower pressure, temp, etc. And it will change into a lower amount of mcf that is almost all methane, and then natural gas liquids.
So each 1 mcf at the pad becomes something like 0.65 mcf of methane and then say 5-10 gals of ngls. Those things just sell differently, so different price. This is how produced natural gas is sold, combined stream of residue and ngls.
Feel free to skip this part if its gibberish. For myself, I go and look up the total amount of mcf reported to the state. So for instance for Trudy 30H in August, the state says it made 59137 mcf. Look at how many gross mcf you were paid for in Aug on that well. Probably like 40k-ish. Gives you an idea of how much it “shrinks” at the plant. Then look at how many gals of NGLs you got paid for in August for that well. Give you an idea of your ngl yield, that is how much liquids came from the missing mcf. Then…take the state reported volume (59137), multiply by your decimal, that will tell you how many net mcf they produced at the well. Sum up your gas and plant products revenue. Divide by your net mcf. That will tell you have much revenue you got per produced mcf (from both the gas part and the plant products part). Compare that number to Henry Hub for the month. (For August HH average was $2.58). Then you will sort of have a frame of reference for what you are getting for gas. I tend to just assume that next month etc will behave similarly.
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That was exactly what I needed to help my understand! Not gibberish at all to me. Thanks so much for you advice and time again!
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