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Re: None

Saturday, 09/14/2013 1:33:20 AM

Saturday, September 14, 2013 1:33:20 AM

Post# of 162657
MadDog1313, It's my understanding that GDSM's percentage ownership in this play is in fact a working interest. This simply put means GDSM shares in the costs of maintaining this well. Should the down hole pump fail and require a production rig to pull the well and change the pump, GDSM stands responsible for their proportional share of the over all cost. I.E. let's just say the bill for a pump change is 16,000.00 GDSM owns 2%, their portion of the bill would be : 320.00. The only way a working interest can be circumvented is if GDSM were to go non-consent. If GDSM were to go non-consent, GDSM would not receive any revenue from the production until the oil company received back GDSM's share of the work over costs from the production of said well. Once the oil company recovered the 320.00 from the production, GDSM would once again start to receive revenue from the production.