projection of earnings for oil wells Banner Advertisement
Costs to be considered

These items should be considered in any projection of earnings

Here is a partial list of what comes out before
an independent can expect a profit for his effort:

1. Royalty
2. Severance tax
3. Income tax
4. Ad valorem property tax
5. Electricity or propane for pump
6. Workover costs; testing costs
7. Repairs to surface equipment
8. Trucking costs to market or pipeline costs
9. Water disposal costs
10. Regulatory fees (P-5, plugging extensions, etc.)
11. Regulatory tax
12. Regulatory compliance (P-1, etc.)
13. Administrative fines
14. Equipment purchase
15. Pumper costs

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Money In Oil, Tyler, Texas 903-561-1554