It actually doesn't look like they even drilled anywhere under my father's 21.97 acres. Are those drilling lines? So even if they never drill under the property he still gets a share?
Mickie Byrd said:
Attached is all the info on sid Ellis. Page 18 shows the plat displaying the owners tracts. No other wells intrude the unit.
Since the Sid Ellis came on line, it has produced 1,719,862 MCF thru latest production filing. Your 0.6537% is equivalent to 11,242 MCF of gas.
Question is the value of that produced gas (i.e. what Devon was paid) since 2008 minus any marketing / processing / taxes / etc. that would be deducted from the gross revenue stream.
If you assume $4 per MCF, you are looking at close to $45,000 pre deductions.
Low present rate (let's assume 200 MCF per day) will work out to about 40 MCF total net to your family's minerals per month. And gas is less than $3 per MCF today. But well will probably produce for another 20+ years and as was noted earlier, another 1-2 wells could be drilled on this unit (assuming gas prices increase - not economic to spend $3-4 Million on new well right now)
All the mineral owners in the unit (631 acres) get a proportionate share. The wellbore does not have to go under / through your property.
Ginger Clark said:
It actually doesn't look like they even drilled anywhere under my father's 21.97 acres. Are those drilling lines? So even if they never drill under the property he still gets a share?
Mickie Byrd said:Attached is all the info on sid Ellis. Page 18 shows the plat displaying the owners tracts. No other wells intrude the unit.
I understand your confusion and empathize with you - not the easiest thing to figure out if you are starting from scratch on your O&G related education.
Have your brother designate you and move on with the intent of making sure the family members that are interested receive their shares- the ones that don't express any interest have them sign off with a notary so they don't come back - I know in my family there was an executor who was charged with distribution of shares and some of the members of the family sold out and the distributor continued to pay them anyway - made for a lot of bad blood.
Tax collector out of Stephenville 254-965-8630 office knows how many wells - I know this as I received a tax bill. The whole thing is driving me nuts