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Old 12-21-2007, 08:24 AM
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petey petey is offline
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Join Date: May 2002
Location: "Pitch Pine", PA
Posts: 65,793
Dan,

Glad we're paying the same in the Appalachin basin as you are in Colorado. My gas bill is compairable with about the same size house (heating upstairs, not basement) , average about 65-70 degrees and no more. If we need more, I supplement the living room with wood in the fireplace.

Sometimes I can get that room up to 75 degrees just by burning wood. I have that room on it's own zone for that reason (and the fact that it's got a loft with 16' ceilings and skylights to boot... not the best for keeping heat in such a large space.

That'll all change once they spud that well on my property in the spring. My lease is up early summer and the gas company I signed with confirmed at least 1 well on my property by springtime. I burn up about 150-170,000 cubic feet in a year. I get 300,000 (free gas) per year off the well and 1/8th royalties or 12.5 % after lifting costs. If she's a boomer or is a good oil producer, it could pay my mortgage too. I'm not expecting that much from royaties, but it could be a good one. They planted 50 wells within 2 miles of my place this summer, (mostly a promoter company). My neighbor's one well that's closest to me is a good gas well, with no fluids. He's getting some hefty royalties. Another 1/4 mile down the road is more of an oil producer not so much gas.... being in the drilling business, I know that even 5 acres away from a great well, may produce a not so good well depending on the sandstone payzones. BTW these are shallow wells around 2100-2700 ft

Free gas will be good, but at close to $100 per Bbl of oil and $7 per MCF of gas could be good. Even an average well for the area that produces 300 MCF per month could put $250 in my pocket each month. How's that for a kicker?? Get free gas, then get a check for more than you would have paid for gas you use?? Initial 3 month flush could get me up in the thousands on roayalties, so I'm all for them planting 1 or 2 or however many wells they want on my tract of land. Looks pretty promising

That's why you won't find my complaining at the pumps. Yeah I may gripe a little, but I can't produce natural gas and or oil and make money off of it, then turn around and complain when I have to pay for gas to put in a vehicle. That would be a bit hypocritical I think.
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