<< Maybe ask him how much 1 million cubic feet per day is worth to a company, annualized. >> Since I've already done this math for the edification of the Anvil thread, here's your answer; you're welcome.
First, a few assumptions:
Price of the gas: $2.25 per thousand cubes. A million cubic feet is "one thousand thousand [ 1000 x 1000 ]
Days of production per year: 300, to allow for well servicing time and other outages.
Ownership: 87.5% working interest. In Texas the mineral owner gets the remaining 12.5%.
OK, here we go: $2.25 * 1000 * 300 * .875 = $590,625 per year, gross. Out of that, of course, comes severance taxes, ad valorem taxes and expenses of production.
All this assumes they ever actually drill a well. It's like saying "If we had some ham, we could have a ham sandwich... if we had some bread". Let's see... NTAH's been conducting The Matagorda Island Chinese Fire Drill since late April
biz.yahoo.com
when the preceding bufu and bafflegab press release came out. Since then another small company [ Canadian, by the way ] named Anvil has drilled, perf'd, frac'd, tested, is about to complete and start putting gas into the line from their first well over in Webb County, also in Texas.
So, unless and until NTAH decides they want to be an oil and gas company instead of talking about being one, we're going to languish here in the teens. Our heirs may enjoy an NTAH producing 20 million cubic feet a day... then again, maybe they wont.
Just to show you my heart's in the right place, here's something you can agree with me about: the sun will come up in the East tomorrow morning.
$^) |
