|
SD/ND/FL | I bought a Bakken oil lease last year on 3.33 acres for $5,000/acre. The lease has a 20% royalty.
They've drilled one well on the acreage so far. It cost me $24,500 for my share of the drilling costs. To date, my share of the net revenue has been $38,700.
Lease Purchase - $16,650
Drilling Costs - $24,500
Total Costs - $41,150
Revenue - $38,700
My last monthly check was $1,800 so I should have it all paid for in 17 months of production.
They are drilling 6 more wells on the acreage so it'll be interesting to see how they produce.
I'd like to buy another lease or two but the leases have gotten quite expensive in the above avg areas, $10,000+ per acre (if you can even find any to buy).
Given that I favor cash flow-investments over the stock market (farmland, apartments, etc), I thought I'd share my experience with this asset class. It's been a fun learning experience, hopefully the new wells turn out as good!
Edited by ImTheBoss 9/16/2014 15:14
 (Bear Cat.PNG)
Attachments
----------------
 Bear Cat.PNG (117KB - 779 downloads)
| |
|
Oil Well Investment
