I am trying to find out also -if u could let me know
drilled more than a few wells in the area but they are shut in as they are waiting for the pipline. The property is in the super rich area Robinson Twp. Wash Cty -the DEP is reporting on a few wells (Robin Hill/Chevron) that have be around for at least two yrs. which are approx. 4.5 miles away
1365.43 MCF (day) 1.193.3 bbl (184 days) (?)
2548.00 MCF (day) 724.73 bbl (17days)
2394.50 (day) 502.56 bbl(46 days)
The unit (of which will be nego. on mon.)
will be 640 acres +/-
my percentage is 16%
my acres- 10.1
not sure how to figure this one out can you help or direct me to where and what numbers above I use
It's extremely important that you understand the nature of royalty payments. There's no guarantee, ever, how long or how much you can expect to receive. Something could happen to the well and it could stop producing - the hole could collapse, equipment failure could cause the well to shut down, or whatever production the frac shook loose could simply be exhausted. In other words, don't spend money that's not in your pocket. I knew a woman whose mortgage payment was contingent on the royalty check she got each month, and the well was shut in for maintenance for 6 months, and she lost her house (that's the short version of the story). Flow could be restricted because of price or pipeline capacity. Just don't assume the checks will always be the same amount, or will come every month. It could stop at any time.
Another problem is that there could be legal problems that pop up that can effect a well as well. Unit size might be changed, a EPA challenge due to a incident. My suggestion if you can perhaps get out of debt if any as soon as possible. Stash any above that amount into investments say farm equipment, buildings, perhaps more property but only on a cash paid in full. You will need to consider federal taxes as well you might become a wealthy person that is in the cross hairs of the O bum a hunting team.