On Feb 2, 8:30*am, iBoaterer wrote:
In article a0e0c815-0c03-4304-b10f-da94bbe1dcd6
@f6g2000yqm.googlegroups.com, says...



Looks like my neighbor *whose *farm property is next to mine is
drilling an oil well. *If it comes in, we might also be interested.
They're drilling down only 2200 ft into the 'tar springs' zone. from
another that he has, it is a low but steady rate of about 13 bl. a day
and has been for several years. So this new one will probably do about
the same, give or take, that is, if it even comes in at all.

. Which after operating expenses, still leaves a tidy profit.

We'll see what happens.

In northeastern PA there are oil wells in a LOT of people's back yards.
Has been that way for many, many years. Lots of leaky pipes connecting
them to a central collection place. I don't understand how each
individual gets paid for their oil, if there are meters or what.

Around here it's sold by the truck tanker load. The pumper/guager
watches the level in the tank, and when so high calls in a truck for
transport.

A well in this area is sold in 32nd shares. The promoter/investor
usually has the most shares, and the land owner may have a share or
two for the use of the property, but has the opportunity to go in on a
well and buy more shares, but unless a person has a lot of expendable
capitol to lose, this isn't a great idea, because a lot of wells are
'dry holes' or extremely low production.

But to make the longer story short... the tank load is sold to the
pipeline company who in tern cuts a check to the producers company,
who in tern, after operating expenses are deducted- pays every one
else.

So, even with oil at a high price, and you only have one 32nd share
in a 3 barrel -a-day well; by the time you get your cut (after
expenses) You might get enough to take your wife to Cracker Barrel
every week.

Owning interest in an oil well isn't as glamorous as one may think.