royalties

It seems a lot of figures are being thrown around for the royalties, a guy from yahoo has worked it out to be 141,000,000, enercom where around 60 million, here is the yahoo post


What the 3.8% royalty means to me:

--3.8% royalty on every well
--24,000a. sale
--1 well per 160a allowed
--150 net wells by CHK
--est 413,000 Bbls/well (from presentation)
--$60/bbl (my est of sale price)

...$141,000,000 in royalties plus the $74,000,000 for the leases.

Only question is when does Samson get the royalties? Looks like a revenue stream for many years to come and it won't cost Samson a dime. Oh, do not forget, they retained 16,000a of the Niobrara for themselves. Nice work TB! Rnel