Allenergy Inc. (ALRY)

[Tulsan]

The cost for operators are many. Here is the first of many, the MR owners are wanting 1/4 free ride as a non working interst. That means the others will have to carry them. Then, there is the bonus that is paid per acre and that can vary. I would say for the SE Kansas area the bonus per acre would be around $300-$500/acre, I could be wrong. That bonus can last for about 3 years and then either must be drilled completed and producing or they will have to try to renew and rebuy the lease with a bonus per acre. There are some landowners MR and surface owners on this board that would know. If the MR owner is not the same as the surface right owner there can be problems and money usually will work it out. Before you ever think of drilling be sure and know that you will have a pipeline that you can connect for the gas. This is a major problem some don't take into account. If not you might be screwed. If your going to have to put a pipeline in I would move on to another project. Due to the expense of paying for it and then paying the landowner per rod. A rod is 16.5 ft in length and you must pay the landowner to bury it and usually it's paid by the rod. That amount will be discussed at a later time. These are just a few of the things that must be thought about before you even think about drilling. I realize that Larry, Rex and Frankie have been in this business forever. How have they done in the past? Here's the kicker, have they ever had a public company?