An oil and gas lease is a contract allowing for the development of the natural resources under your property.
Each state has different laws governing oil and gas ownership, if you are uncertain about your ownership, please contact us at firstname.lastname@example.org
A signing bonus is money received from signing an oil and gas lease up front. Signing bonuses are paid to the owner of the minerals on a property upon signing a lease or within 45-60 banking days depending on the completion of title. Signing bonuses are generally calculated on a per acre amount.
Royalty is money paid after a producing natural gas well gets drilled and the producing gas gets sold to market for distribution. The amount of royalty a property owner can expect is based on a percentage calculated by acreage, production, and the market price of natural gas.
Oil & gas production and oil & gas prices vary from month to month. Thus, variations in volume and the market price of natural gas will cause fluctuations in your royalty checks.
A seismic test is the process of getting images of rock formations below the Earth’s surface using reflective technology to map the various rock formations below the Earth’s surface.
Oil and gas rights can be owned by private individuals, corporations, Indian tribes, local and state governments, or the federal government. These rights extend vertically from the property line and unless they are separated by a deed, these mineral rights are owned by the landowner. When the oil, gas and mineral rights are separated from the land ownership they can be bought, sold, or transferred.
A wellbore is a hole that is drilled to aid in the exploration and recovery of natural resources including oil, gas or water. A wellbore is the actual hole that forms the well. A wellbore can be encased by materials such as steel and cement, or it may be uncased.
Wellbore positions are determined using a method of combining multiple wellbore surveys including single and composite. Established methods to define wellbore position rely on accepting the position obtained from the most accurate survey instrument available. When a wellbore is constructed today, each section may be surveyed for position using different survey instruments (magnetic, gyroscopic, or inertial instruments) and a new position, is calculated and designated as the "most accurate position" (MAP). A MAP offers less uncertainty and is smaller.