Centinela Hospital
Sundance Resources
Barnett Shale
Working Interest
Further notes:
11/30/2005
Five States - Jim Gibb
1. Rules of thumb -
- 1000 days production at 1 day's rate
- 1/2 of the total will be pumped by the end of Yr 2 or 3
2. Reserves - 0.7 - 1.2 BCF/well
- if 1 BCF at $8 gas, $2M investment
- $8M top line
- $6M after royalties, etc.
- $3.6M total on a $2M investment
- simple calculation might be 80% * NRI = take-home
11/23/2005
Costs
- Lease of $10/acre to $500/acre
- Royalty of 12.5-30%
- Total return of 2:1
12/01/2005
Some more notes from Brian Humphrey
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment