Wet gas vs dry gas

What wells will likely produce more royalties for the land owner in ohio? a good well in a dry gas area such as Belmont wells or good wet gas wells such as a Harrison county well?

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 17, 2014 at 6:43am

buckeye2600

This would be a two part answer, one dealing with the well location as you have stated in your question and the 2nd part would be

"Which producer in that area is most likely to pay you the largest amount of the royalty owed, assuming no one pays 100% of your division order ownership, as they should (these are oil and gas companies which are not known for their ethical behavior)".

Before our parents were born, probably around 1900, the O&G companies started a tradition of theft that was never brought under control, probably due to the age old problem of money being a corrupting factor.

Anyone care to dispute this fact?

Common you oil & gas folks tell us about your ethics procedures I know you have them in an electronic library. Has the electronic dust been blown off of them through use lately?

Permalink Reply by Jack Straw on August 17, 2014 at 2:27pm

RE: "Before our parents were born, probably around 1900, the O&G companies started a tradition of theft that was never brought under control, probably due to the age old problem of money being a corrupting factor.

Anyone care to dispute this fact?"

I will dispute the above. It started long before 1900 ..... it started shortly after Drake's well in 1859!

Other that that minor point, I am in full agreement for what you stated.

All IMHO,

                 JS

Permalink Reply by James Foster on August 17, 2014 at 3:32pm
How could an oil company pay landowners 100% of division order ownership? Do you understand how a business works? Who took the risk here and invested millions in leaseholds, equipment, materials, research, permits, fees, infrastructure. The oil company BUILT THAT ... Not the landowner, not the local, state, or federal govt.
Permalink Reply by Dexter Green on August 17, 2014 at 4:02pm

"The oil company BUILT THAT"

You're dead wrong, James.  President Obama and the government built that.  "You didn't build that."

Permalink Reply by Jack Straw on August 17, 2014 at 4:06pm

RE: "RE: "Not the landowner"

I assume that when you used the term "landowner", you were referring to the individual(s) who own the mineral rights (as in own the minerals).

I think that all those individual owners of the minerals wish and deserve are a fair percentage of royalties and a fair and honest accounting. It seems that obtaining fair and honest accounting has become problematic.

RE: " Do you understand how a business works?"

If you are referring to the O&G industry; I worked in that business for 30 years, as an employee. I was one of the majority partners in a 'C Corp' that purchased Working and Royalty Interests in wells in TX, OK, LA and AR for around 20 years. I first set foot on a drilling rig (a cable tool rig) more that 55 years ago. Investing in O&G is a  'hobby' has been profitable in retirement'.

What is your O&G business experience?

JS

Permalink Reply by Dexter Green on August 17, 2014 at 4:05pm

To answer the original question, it's wet gas all day long.  And it's not even close.  Dry gas wells--if the EURs are high enough--are attractive, even at these prices.  But any liquids-rich area is going to see much higher gross numbers.  As for the landowner's share, well that's a whole different story.  See Ron Hale's comments for further understanding.

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