Oil Well-Odema: Difference between revisions
Embeddedrf (talk | contribs) New page: *[http://www.geomore.com/ Geologists website explaining how to get oil well drilled / what to look for] *[http://www.amarketplaceofideas.com/help-me-drill-an-oil-well.htm synopsis of repor... |
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*[http://www.amarketplaceofideas.com/help-me-drill-an-oil-well.htm synopsis of report] | *[http://www.amarketplaceofideas.com/help-me-drill-an-oil-well.htm synopsis of report] | ||
*[http://amarketplaceofideas.com/Media/Odema-Prospect-OilWell/ full scan of report] | *[http://amarketplaceofideas.com/Media/Odema-Prospect-OilWell/ full scan of report] | ||
== Standard Oil Lease holder / Invester Agreement == | |||
Standard deal is called "1/3 for 1/4" ie by paying for 1/3rd investor gets 1/4 | |||
of production ; 'we' get the rest. | |||
In this case drilling and completion cost is about 1.3M$ ; we have 80% NRI (net | |||
revenue interest ) leases , meaning that land owner gets 20% (12.5% is Gov | |||
imposed minimum but often they ask for extra and we also have some baggage with | |||
some people); the 80% is split 60/20 between investors and ourselves. | |||
Before we drill anything investor will get a 'title opinion' - legal statement | |||
re legality of our leases. Investor gets paid directly by the refinery, not by | |||
'us'. | |||
If we drill a dry hole some of 1.3M will come back because its reserved for | |||
completion. Rig wait time hovers around 5 months. Drilling will be supervised by | |||
Trio Operating Co. (they have a nice website), I forget the name of the driller | |||
but they are 2nd or 3rd biggest in US. | |||
State limits production to 160 barrels per day to preserve the long term | |||
production potential. | |||
Oklahoma state tax is around 7% i think. | |||
Revision as of 19:56, 12 July 2008
- Geologists website explaining how to get oil well drilled / what to look for
- synopsis of report
- full scan of report
Standard Oil Lease holder / Invester Agreement
Standard deal is called "1/3 for 1/4" ie by paying for 1/3rd investor gets 1/4 of production ; 'we' get the rest.
In this case drilling and completion cost is about 1.3M$ ; we have 80% NRI (net revenue interest ) leases , meaning that land owner gets 20% (12.5% is Gov imposed minimum but often they ask for extra and we also have some baggage with some people); the 80% is split 60/20 between investors and ourselves.
Before we drill anything investor will get a 'title opinion' - legal statement re legality of our leases. Investor gets paid directly by the refinery, not by 'us'.
If we drill a dry hole some of 1.3M will come back because its reserved for completion. Rig wait time hovers around 5 months. Drilling will be supervised by Trio Operating Co. (they have a nice website), I forget the name of the driller but they are 2nd or 3rd biggest in US.
State limits production to 160 barrels per day to preserve the long term production potential.
Oklahoma state tax is around 7% i think.