quote:

That's the kind of thinking that these companies hope for from uneducated rural people, it's far from "free money".

It's not "free money" but very very few mineral owners have the technical and/or financial ability to develop their own minerals. A lot of them are virtually clueless to how it works, as are many of the attorneys who pop up in these hot plays chasing business. In an area like this a lot of the parties probably have never negotiated an oil and gas lease or drilling deal in their lifetimes.

D0 the math on 22 % ORRI.
On a 500 barrel a day well for the
first month of production alone.

Haynesville shale spoiled the living hell out of land owners.

and like TigerDog83 said 99.9 % of landowners do not have the ability ( mental, fiscal, or physical) to develop their own minerals.

Oil and gas companies are making people super rich.
Not screwing them...

So yea if you are offered 200 dollars an acre and 22% free ORRI gettin paid for having land situation.
Take that shite

This post was edited on 9/13/11 at 4:37 pm

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Posted by TigerDog83

Member since Oct 2005

8275 posts

Posted on 9/14/11 at 9:06 am to thedice20

quote:
So yea if you are offered 200 dollars an acre and 22% free ORRI gettin paid for having land situation.
Take that shite

Every play is different and the needs of every individual are different. The guy who has $10 million in the bank and no debt is obviously going to approach leasing differently than the person who is living paycheck to paycheck. Lease rates are going to differ if you are next to existing production, are in a proven area, etc. An area with competition usually will bring higher results than a conventional prospect with one independent making an offer. People should be wary of attorneys or other "advertised professionals" who want to manage their minerals and take a cut of the leasing and production. A lot of people learned first hand over the last few years why involving these kinds of outfits can be a bad idea.

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