Has anyone ever participated in a well that you have mineral rights in. What does it entail? Is is better just to collect the mineral payments. Just looking for general information.
TIA
No this is the first one
You had better have deep pockets and assume that every dollar you put in can be a total loss and not affect your family....and a drilling and completion risk insurance policy. And you better put your minerals in an LLC to protect your family. Some operating companies can be very good or very nasty to deal with. Better decide ahead of time if you only want to participate in the one well or have the money to come up with immediately for the additional wells. Read everything carefully and have an oil and gas attorney go over it with you. This is not for the uninformed.
We do not participate.
Thanks. This info helps a lot.
Paul, I own family minerals in Blaine County (my family was from Canton/Seiling) and have been in the oil and gas business in Texas for 36 years. If you want to email me I will give you my contact information and I will be happy to explain WI participation. There are good and bad aspects to it but I would sure be cautious if you are considering it, especially in this price environment. You can email me at Jimedsel@patriotinvestmentslp.com.