"Earl, do you know the target formations of these wells?
The reason I ask is all the Marcellus wells that I have seen plats for, drill to the NW and SE; I have not seen an exception to this, so it is interesting that they may be trying a new…"
"The E&P subsidiary of NFG (National Fuel Gas) is Seneca Resources, which has been active in Tioga Co. with PA State Lands leased years ago.
SWN is a different entity altogether and not associated with NFG."
"To L. Gilmore
You might consider selling a portion of your rights. Say 50% (pick a number good for you) of the total. That gets some cash now and keeps you "in the game" (if you WANT to stay in the game) for the day things improve in the…"
I am curious about your statement regarding Shell's maintenance on existing wells. What actions should a producer be taking to keep the wells from falling off in production? Are there specific things that others do, that Shell did…"
"Just imagine that YOU were the one making the hard choices when the pandemic first began.
Pick a country, any one of the European countries, or the US, or Canada.
Be honest and don't rely on your current hindsight information and data to make…"
"As I understand it, the May contract pricing kicks in tomorrow. That forward metric is at $22/bbl?, so this low price today, actually a NEGATIVE price at close today, will jump tomorrow.
In any event, all things came together for a perfect storm the…"
"The conspiracy theorists are having fun with this one, so many choices, so little time. Is it a true 'pandemic' naturally occurring in Nature, or a manmade 'terror' unleashed on the world's population by some unscrupulous…"
"I read some interesting commentary on the oil price fiasco in recent days. The gist of it is this; depressed oil pricing will cause all Oil producers to cut back on E&P, including those in the Permian Basin. Why is this relevant to NG prices?…"
"Adding to all of the valid points raised in this discussion, I have recollection of conversations alluding to the Shut-in provision and how that adversely affects the total EUR of some/most shale wells. IIRC, once a shut-in well is brought back…"
"farmgas, this might be just an internal maneuver to defer tax obligations. In the long run, it doesn't seem to be a healthy practice, more of a 'keep the place running' strategy.
I would think they certainly could do it again, but…"
"My question, is Encino trying to take their 'tax deduction(s)' early by assigning as income the deductions from Royalties paid, thereby lessening their income and shifting more to the landowner?
Good advice Joe...your CPA/Accountant should…"
"I would not think 'dead' would be an apt description, but certainly worth less after the impairment charge.
Carrying these less valuable assets does not mean they need to be sold off, as we know a real $$ loss only will happen once the…"
"First, a disclaimer...I am not an accountant.
Having cleared that up, it has been explained to me that E&P's will 'devalue' the asset on their balance sheets and P&L statements, most likely to gain a tax advantage.
bullfrex I'm not real good at math but I would think 16% with no deductions would be better for when the well starts to drop off after a year or so .with 18% with deductions it hard to tell what the deductions would be I probably would owe them lol ps I value your opinion thank you BILL
bullfrex I have another dumb question lol. I just got a letter they want to lease my land at my house .in your opinion would it be better to go 18% with deductions or gross royalty at well head at 16% with no deductions its only for couple acres thank you sir
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]