production curve

Assume an average initial production rate of 4,000,000 cubic feet [4000 mcf the first day and possibly $5 per mcf for $20,000 for the first day's production.  30 days maybe $600,000 

production dropping maybe 80% the first year and maybe loosing 20% of what's left the second year before settling down to fairly constant but gradually decreasing production over the next 20? years. It is still a lot of dollars.

Maybe 5 to 10 wells per drilling pad

From drill pads horizontal wells maybe 200' long

horizontal wells in parallel lines about 500 feet appart

units of 400 to 500 acres?  

royalty income from unit split based on acreage.

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Permalink Reply by Jean Michel LeTennier on April 9, 2010 at 11:29am
all the reason , to make the best deal possible the first 2 years?

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