Scan this website. There is a very detailed thread about royalties. $71per acre per month for gas is the short answer. But then if it's gas, wet gas, oil combinations it all changes considerably.
If you assume $70 per acre per month then also assume that for only the first three years.
Then assume $35 per acre per month for the next three years.
Then assume $20 per acre per month for the last four years.
That averages to only $40 per acre per month over the 10 year life.
So, $5,000 (+/-) per acre over the lifetime of the well ???
Production will drop over the lifetime of the well.
How fast, is only a guess-timate until a horiz well actually produces for 10 years.
Maybe, the well can be re-stimulated after 10 years ?
Also, I think initial royalties can vary from well-to-well from $140/acre/day to $35/acre/day.
This is all for GROSS Royalties.
If your lease is for NET Royalties then expect less.
The South-East corner of Columbiana County may be DRY GAS (or may not). Until Chesapeake actually completes several of their many well sites that are under construction in Eastern Columbiana County we/they do not know for sure. Yes, the Thompson well in Beaver County, PA is Dry Gas. The Utica in Ohio needs to be drilled and fracked before CHPK knows for sure what is underground.
Do you know for sure that the Thompson well is ONLY dry gas? I thought I had read that this information was based on a news release by Chesapeake end of Sept.2011. Chesapeake was at the time under no obligation to reveal the full results.
Don't you think new technologies will be developed over the years that will increase production numbers?
I wrote ...
" ... Maybe, the well can be re-stimulated after 10 years ? ..."
Missed that. I would hope and guess the big players have hefty R&D budgets and once a good hole produces new technologies will keep them coming back for 30 to 50 years.
These shale wells tend to have much shorter lives than advertised. Average Barnett well is 7.5 years. The mode is 4.