Has anybody heard of this? I have a WI for 1% and company is asking for $5700 even though the cost to recomplete is $375,000.
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Contact the operator and ask why. Sometimes there are errors or extra charges. The AFE is only an estimate. The actual costs may run higher.
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The person told me it is a 1/3rd for a 1/4th type of deal structure. Thoughts?
It was a very common deal structure in the oil and gas business. If you do a web search on “what does a 1/3 for 1/4 mean in a working interest well deal” you will get the history and some useful information. You may need to look at the original working interest document to see what you are carrying for the recomplete versus an original drill.