Saturday, February 23, 2008

Owners Explore for 75% Royalties

Could it be possible to generate the equivalent of 50% or even 75% royalties on the gross production of a well that includes your mineral acreage? I don't know but if the operators can generate 50% AFTER all development/completion/production costs and AFTER paying a 25% royalty to owners, it may be possible that, with appropriate support, a group of united owners might be able to increase their effective royalty from 25% while still getting the help they need to manage the drilling and production process.

I'd like to find out BEFORE I sign a lease that makes co-production impossible. Let me know what you think. Is it worth exploring? Leave a comment here.


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