Thu, May 23, 2013, 12:50 PM EDT - U.S. Markets close in 3 hrs 10 mins
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Why the 8.4%. Don't they pay for oil by the barrel?
Earthstone has an 8.4% interest in the well, so they receive 8.4% of the revenues. There is a decline rate, so the other person's estimates are probably high (unless the price of oil really jumps). But it is a strong onshore well.
The numbers I came up with will depend on production rates in the future as well as the price of oil which has been holding steady in the $70 - $80 dollar range.