Working Interest

We have open minerals near the center of Newfield's new Stack play. What are the benefits/liabilities of having a 'Working Interest' as opposed to a 'Royalty Interest' for a 'Mineral Owner' not in the oil business ?

Jan, Blaine County Mineral Owner

I read a reply once from someone who I respected in the business on another advice type site. I think it was called Ask the Expert. His reply was that the working interest route was not at all for novices. They will bill you for your share of expenses and things like that. He advised against it unless you knew what you were doing. He definitely did. You may be a little green.

Thank you, I was thinking the same thing. Jan

I read a reply once from someone who I respected in the business on another advice type site. I think it was called Ask the Expert. His reply was that the working interest route was not at all for novices. They will bill you for your share of expenses and things like that. He advised against it unless you knew what you were doing. He definitely did. You may be a little green.

Unless you have very DEEP pockets, avoid a working interest ownership.

You can agree to a $1 charge and be invoiced, contractually and legally, for one million dollars.

Bob Malone, Oil and Gas Auditor

Ouch, my grocery money isn't that plentiful................

Thank you !