Weighing Options for Producing Well, Leasing v Participating

Oil and Gas Leasing Help
1

I have a 5 net acre interest on 1,278.56. Considering Royalty option, $4k upfront, 20% royalty vs. Participating interest, $42k cost upfront, .39% payout after 150%. Is this enough information for someone to offer advice on the participating interest? for someone wiling to take some risk, is the participating interest option considered a good route?

2

I feel you should know a lot more before you jump into participating. There are so many factors involved as well as judgement calls.

3

Cal:

My advise is to not persue any participation in the well. As the above post stated, numerous factors are involved in the participation of a well and it could take you years to profit from this decision if you ever realize a profit. There are other posts on this forum discussing this topic and would advise that you read these and understand fully what factors are involved in participation.

4

Thanks for the feedback