Could anyone give me pros and cons on participating in the drilling of a well vs taking a bonus instead?
We have a very small acreage in one property (1.85ac) and thought this might allow us to actually see what it is like to participate in a well without investing too much capital.
We have received the Authority for Expenditure thus far.
Interest is located in 18-12-13 in Caddo County. This is a multi unit horizontal well. Approx depth is 15,583 tvd / 23,526 MD (not sure what the tvd / md mean) and includes a 7,396 horizontal lateral. Estimated dry hole cost is $5,503,248 and total completed is $10,356,938.
I see nothing in this original letter that defines spacing. My understanding is that I would need to know that to determine our fractional interest.
Bonus offered is: 1/8 @ $1,300 3/16 @ $1,100 1/5 @ $500
I would appreciate any opinions.
Thank you, Dan