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We're all eagerly awaiting the next installment ch3cooh. I'm choosing to believe that the long silence is caused by you and your team becoming obscenely busy implementing your plan and making a boatload of .
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# ? Apr 5, 2014 14:17 |
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# ? Apr 26, 2024 18:25 |
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Where would be a good source to learn about well leases? I work in commercial real estate, but only with normal stuff like office, industrial, retail and multifamily so I don't know what well leases look like. Are they ground leases or are there other things that go on with O&G stuff?
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# ? Apr 5, 2014 19:07 |
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crazypeltast52 posted:Where would be a good source to learn about well leases? I work in commercial real estate, but only with normal stuff like office, industrial, retail and multifamily so I don't know what well leases look like. Are they ground leases or are there other things that go on with O&G stuff? What do you want to know, and to what end? I'll take the time to give you a very brief synopsis using mostly lay terms, but it's a tough game to get into without spending years doing it and learning it. There's no such thing as a "Well Lease". In a typical scenario, a company gets an "Oil and Gas Lease" (OGL) from the owner(s) of the oil rights (paying $x/acre up front as a signing bonus), which gives them the right to drill for oil and/or gas. An OGL has a primary term of x years (ranges depending on negotiations, but 3 to 5 years is somewhat typical), during which you have to drill your well(s) or the OGL will expire. If you drill a well and it produces oil and/or gas, then the lease remains in effect for so long as the well(s) continuously produce(s), also allowing you to drill more wells in that time if you want. Per the terms of the OGL, the owner of the oil rights gets paid a royalty on every unit of oil and gas produced and sold (with some minor caveats I won't go into here). That royalty depends on negotiations; it will never be below 12.5%. Usually you won't see more than 22% royalty, and that's in very hot plays. Some areas of Texas will see 25%, but that's pretty insane. The owner of the oil rights won't necessarily be (and often isn't) the same as the owner of the land itself. The OGL itself typically allows the company to use the land to drill, but in most instances the company will negotiate a separate agreement for the well site with the landowner anyway (usually called a "Surface Use Agreement"). There's really no such thing as a "typical" lease or situation, though. The above is just the archetype for how it's usually done.
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# ? Apr 5, 2014 20:32 |
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crazypeltast52 posted:Where would be a good source to learn about well leases? I work in commercial real estate, but only with normal stuff like office, industrial, retail and multifamily so I don't know what well leases look like. Are they ground leases or are there other things that go on with O&G stuff? There are some good basic videos at http://mineralrightscoach.com However like the poster above said, it can be a very complicated topic.
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# ? Apr 8, 2014 06:18 |
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Any updates on how things are going, just read the first article and this thread and I'm hooked on the drama the twists and turns.. Will the deal happen. Love to see people who actually go beyond talking about an idea and actually make it happen and get handsomely rewarded in the process!
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# ? Apr 8, 2014 20:02 |
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Also wondering about any updates.
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# ? Jul 1, 2014 04:32 |
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foundtomorrow posted:Also wondering about any updates.
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# ? Aug 1, 2014 05:23 |
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# ? Apr 26, 2024 18:25 |
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I've gone from rig welders helper to frac sand hauler over the past year. This frac sand hauling stuff is intense. Run until the well is complete. Long rear end shifts until the well is complete, not much sleep. Running not so legal many times :X At times I wonder if I should've joined a water hauling outfit with a set schedule and being paid hourly, because being on call can kinda suck and really push your mind and body to the limits. But I don't have to pay for housing which is drat expensive here in north dakota, and like, even if I did have days off, what the hell would I do out here. Just gonna keep my head down, try not to hit anything, and grind it until I can buy my own truck. Work a few years as an owner op and then go retire in Vietnam or something :v
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# ? Aug 20, 2014 18:17 |