Good news from my "Oil" gig.

Discussion in 'The Backstage' started by fett, Oct 3, 2017.

  1. fett

    fett Double Platinum Supporter Premium Member

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    I actually got a Royalty check. The amount is not the issue. The amazement was how much oil they are producing from only 2 wells. We are talking thousands of barrels each. The numbers are staggering. I posted about this last year. I had fun about my windfall and so did you guys. This is getting into serious money. That being said, I hope it lasts.
     
  2. lung plunger

    lung plunger Senior Member

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    Honestly jealous. That's as close to money growing on trees as it gets.
     
  3. sk8rat

    sk8rat Senior Member

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    or you could just sell weed.
     
  4. fett

    fett Double Platinum Supporter Premium Member

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    They sent a sheet with production numbers and all that. It's all about my "Net". I have less than 1 acre of mineral rights that I leased to them. No land. I asked those guys if I had to pony up any money. Nope. The cost of drilling and all that is their money. It costs a million bucks or more to drill a well. It's an 80/20 split. They just happened to Score. They are Way happy. They may just drill a few more wells. My check was for June and July. I can't wait for the August and September check.
     
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  5. staffy

    staffy Senior Member

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    Well done, sit back, enjoy!!!
     
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  6. NewDayHappy

    NewDayHappy Senior Member

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    That's awesome, I'm really happy for you. I think this is means for a celebration. Maybe a new guitar or maybe a night in Thailand with Asian trannies.
     
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  7. electric head

    electric head Don't answer the phone Premium Member

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  8. Pop1655

    Pop1655 Premium Member

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    Good on you bud. I remember the talk back then. I hope you remember I wasn't one who thought it was funny. It sounded real then. It looks real now. Good for you man. Make a plan and make it count.
     
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  9. Who

    Who Who is not here. Please leave a message.... Premium Member

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    Fett, that's great news.

    I love it when the US can produce some oil. A bigger bonus is that you can share in that.

    You're saying they may want more than two wells in just an acre? Are they drilling down, or sideways?

    Do you have any pics of the types of wells they have now?
     
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  10. toymaker

    toymaker Senior Member

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    Hope it last for you too - but a word of caution...the first 12 months are by far the most productive of a well. The amount of pressure they are putting on the minerals to force them out results in a much higher yield the first 2-3 years (where about 60%-75 of the minerals to be recovered from a well will be netted) and the first year will make up more than 50% of that amount. That said - a good field can yield many new wells and production COULD remain steady for 10+ years.

    I personally know a few people who hit it big about 6-7 years ago, started seeing those first few checks would be coming in for years to come - went out and went wild, then saw the double whammy of lower production and dropping prices cut their incomes dramatically.
     
  11. HeartString

    HeartString Senior Member Premium Member

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    Good for you Fett!! You deserve it!! Congratulations!! Life is good!
     
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  12. rockstar232007

    rockstar232007 Senior Member

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    But, then it would grow on bushes.
     
  13. Fracture

    Fracture Senior Member

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  14. DavGrape

    DavGrape Silver Supporter

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    Swimming pools, movie stars.
     
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  15. KSG_Standard

    KSG_Standard Senior Member

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    As a member of the Choctaw nation, my Dad has been collecting a small oil royalty check every month for 50 years. Each individual check is small, but over the course of the last 50 years, they've added up to a nice little nest egg. I'm not sure if my brothers and I will inherit the mineral rights/royalties or not, as we don't affiliate with the tribe.
     
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  16. Chicago John

    Chicago John Senior Member

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    TIme for for some grocery-store meat :thumbs:

    [​IMG]
     
  17. rogue3

    rogue3 Senior Member

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    Nice! Congratulations...easy street!:cheers2:
     
  18. fett

    fett Double Platinum Supporter Premium Member

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    Thanks, Guys. I have done quite a bit of research as this is New to me. The wells are horizontal. What is interesting about the Permian Basin is it's like a layer cake. There are about 5 layers . They drill one layer and then go to the next. There a drilling method that is called, "Octipus". One rig can send out arms. I also understand that oil production can be initially very strong and taper out. My one acre is part of a much larger piece of land. 640 acres, I think. My percentage interest is .0005247. That's not much. The kicker is the Law of Large Numbers. The two wells are doing nicely for now. My Royalty is a way Net. All the taxes had been paid. They provide a sheet showing the production and the price they got for the oil per barrel. What stuck me is the price. $42+. I guess, their cost was a lot lower. I'll consider that my "Base". Oil has risen a bit since then. This reminds me of a Stones' song. Something about "Expectations".
     
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  19. THDNUT

    THDNUT Senior Member

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    So, are you going to splurge and buy an R9?
     
  20. fett

    fett Double Platinum Supporter Premium Member

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    Nope. I have all the guitars I need. It's more about cash flow being retired for more than 15 years. My savings are getting low. This "Oil Thing" will provide me with a source of income that may be enough to actually stop the outflow. I'm 67 and my lifestyle has always been "Living Low".
     

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