Quickstart     Cashflow File     Day     Participation     Other Financiers    Map     Oil Rights     Well Depths     Partnership     Dealmaker

  Shotgun Agreement     Running in the Red     Bankruptcy     Share Price     Corporate Position     Fast Track     Winning

  Leaving the Seminar  Hostile Areas  Subsidies  Joint Ventures  Administrator  Drilling Contractor  Rig Move Cost  Depletion

  Expiry of Rights  JV Leader  JV Drilling Decision    Posting Land    Waiving Extension Fees 

In OilFinanicer, extension fees for oil rights can be waived by participating in the drilling of a neighboring well.

If a deal is made to drill a well directly adjacent or diagonal to your oil right and you are participating somehow in that deal, your extension fees will be waived and your right will be extended for another 30 OF days.

If you are not a participant in this deal, then you have to pay the extension fees before its due date or lose the right.

This "participant" clause will be interpreted rather freely. For example, let's assume that Joint Venture D is drilling a deep exploration well. Joint Venture E has three rights next to this well. If there is one common partner between the two joint ventures, Joint Venture E will have the fees for all three rights waived and the rights will be extended by another 30 OF days.

Negotiation Interest It may be cheaper to pay the entire drilling cost of neighbor's oil rights than to pay all the extension fees. There could be a convoluted financial analysis to determine the best of several alternatives.

It is possible that a deal could waive the fees for all eight of the neighboring oil rights (four adjacent and four diagonal). Oil Rights more than one square away do not count for waiving of the extension fee.

The new extension fee will be the former extension rate or the current extension rate, whichever is less.

Copyright © - DAVE VOLEK PUBLISHING - All Rights Reserved
Contents cannot be reproduced in whole or in part, in any form, without the permission of the publisher
Site developed and managed by Gold Media Inc - Toll Free:  1-888-910-6800