Amendment ppt1
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Transcript of Amendment ppt1
Current Lease Proposed Amendment
Minimum of 1 horizontal well
to develop160 acres
Minimum of ONLY 1 well to
develop640 acres
Currently…160 acres x 4 wellheads = 640 acres
160 acres 1 well head160 acres 1 well head160 acres 1 well head160 acres 1 well head
TOTAL = 640 acres
TOTAL = 4 well heads
TOTAL = 640 acres
TOTAL = 4 well heads
Currently Proposed Amendment
Minimum of1 horizontal well to develop every
160 acres
Minimum of ONLY 1 well to
develop 640 acres
This means SWN can hold more acres with less wells.
If the amendment is approved…
160 acres 1 well head
160 acres 1 well head
160 acres 1 well head
160 acres 1 well head
TOTAL = 640 acres TOTAL = 4 well headsTOTAL = 1 well head?
SWN says… a larger unit means more royalties for you.
NOT TRUE!A larger unit means
more landowners sharing LESS money!
Currently…
Natural Gas Royalty Estimate
Acres 25
Average wellhead price $2.35
Average well production rate 1.5
Royalty rate 21%
Number of acres in the unit 160Expected royalty payment (per month) $3,469.92
If the amendment is approved…
Natural Gas Royalty Estimate
Acres 25
Average wellhead price $2.35
Average well production rate 1.5
Royalty rate 21%
Number of acres in the unit 640Expected royalty payment (per month) $867.48
• SWN could hold your land beyond the lease expiration or “primary term” without an extension payment.• You give up your right to notifications.• Your land could be pooled in a
“noncontiguous” unit (one that isn’t next to you).• You give SWN the future right to amend
your lease whenever they want… without telling you.