"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.
"Ken, it is indeed fortunate that you have signed with a quality outfit. We too are fortunate to be signed with another quality E&P, that outfit being Shell Western (SWEPI).
Where are you located to be signed by Repsol? My nephew sub-contracts as…"
"Tier 1-sweet spot(s)
Tier 2-anything outside the sweet spot(s)
LOL!! Damned if I know...where is OT when ya need him?
Question--how many sweet spots are in the Southern Tier of NYS? And it looks like they will stay unproduced for the foreseeable…"
"The current round of Democrat hopefuls for the White House is mainly populated by "leave it in the ground types". While we are suffering through a 'bust' in the NG cycle...imagine what would happen if one of the Democrat hopefuls…"
"My question regarding Tier 1 spots...are they more profitable wells because of the sheer volume they produce?
I guess E&P's have to produce to maintain some cash flow, but isn't producing your 'best acreage' in this price…"
"I must be dumb...I thought Methane was the main ingredient in 'dry gas'.
Does that mean they can only produce oil or NGLs?
Pardon my ignorance, but I don't understand "specifies NO methane gas extraction"..."
"Boom or Bust...been this way for many years...many cycles. No reason to think this will be any different than the past, although I can see the 'lows' lasting longer this time.
Count yourself blessed if you have been drilled since the last…"
"Another interesting(?) twist in NYS...municipalities can ban frac'ing in their township, but they cannot ban the placement of a wind turbine farm within their boundaries.
A case in the Southern Tier just received a ruling against the town…"
"Pretty sure the NG price, both current and projected, will keep things quiet for quite a while.
Leasing, both new and renewals, will be under extreme scrutiny by the E&Ps to be able to show a positive ROI in this low price environment.
"It happens here in North Central Tioga Co., PA. I would suppose there are many factors in the decision, not the least of which is the output and profitability of the initial wells. In our area, there were Initially two wells on a pad, drilled…"
"IMO, there are several reasons why activity is so low right now....
The wild west days of leasing are over, and the players have enough acreage to develop without new leaseholds.
Producers are now developing that leased acreage with the best chance…"
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
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