Royalties >>> How much per acre in a monthly royalty check

How much per acre in a monthly royalty check ? Certainly it would depend on a few or maybe many factors ..... but give examples if you have them please.
If someone has the figure for drilling in a section ( say about a square mile or 640 acres ) and how many wells were drilled ( horizontal or verticle ) we could then do the math for the size of our acerage included in the section. Or for others who may own many sections etc.

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Permalink Reply by hunter777 on January 27, 2010 at 4:09pm
I've seen from $175/acre down to $50/acre for a vertical in an 80 acre unit,
and $1000/acre initially down to $200/acre for a horizontal in a 140 acre unit.

Hope it helps
Permalink Reply by Jean Michel LeTennier on January 27, 2010 at 5:02pm
Permalink Reply by bill h on January 30, 2010 at 3:34am
$77 per 0.2 acres (from early production) - data from our accountant who owns property in a chk unit
Permalink Reply by Brian on February 1, 2010 at 2:06am
bill h, what royalty percentage did your accountant use for that calculation? and what was the wells production? I'm assuming he used the current market price for ng.
Permalink Reply by bill h on February 1, 2010 at 5:44am
I didn't ask too many questions; didn't want to pry - many unkowns, but I suspect 12.5% royalty based on the time they signed (2006 or 7)

Through other sources one of the horizontals started out at a little over 8 mmcf and the other around 3.
Permalink Reply by Jean Michel LeTennier on February 19, 2010 at 10:01am
Hi guys,

FYI, Mitsui Petroleum just baought an acarage position in the marcells foramtion for what amount to a bout 14,000$ and acre from Chesapeake I think...

http://www.msnbc.msn.com/id/35458947/ns/business-motley_fool/
Permalink Reply by Irene Hufnagle on February 19, 2010 at 9:29am
I am not understanding the formula you are using. We are near a well in Bradford county. We have 32 acres. They are drilling 6 wells and just like you are refering to, but we will be in a lot of 827 acres. 12000ft x 3000ft
how do I get an estimate on the royalties.
Permalink Reply by bill h on February 19, 2010 at 2:31pm
Irene are you in the Otten or Barrett unit? You will get (assuming you signed for 12.5% royalty and gas is at $5/mcf, and all your land is in the unit) :

(32/827)*0.125*12mmcfd (5/1000)

= 290 dollars/day, initially, assuming you're in a unit producing what Otten's is (around 12 million cubic feet/day initially)

Rumors are it will be more in Barrett's unit

But remember it will decline rapidly throughout the first year
Permalink Reply by Irene Hufnagle on February 20, 2010 at 5:22am
Hi, Bill

Don't know what you mean by Otten or Barrett unit. The well is just going up. My property is located off of 187 in Terry Twp. It is in the initial phase and they are telling us it won't be done for approximately one year. There seems to be a pipe line going in right next to it too. We don't live in the area, we just happened to drive by last week and saw the well sight.
Permalink Reply by bill h on February 21, 2010 at 3:38am
otten, and barret are two wells in the area; drilling units are area drained by well 600-1000 acres.

Are you leased? You really need to talk to people in the area if you can spend some time there.
Permalink Reply by Irene Hufnagle on February 21, 2010 at 5:23pm
thanks, yes we are leased with Chesapeake and they are the ones drilling the well. I believe the wells name is Hurley but I am not sure about that. Who would you suggest we get in contact with.
Permalink Reply by Jean Michel LeTennier on February 25, 2010 at 10:02am
Hi Irene,
this deal here puts a value of 14,000$ an Acre for tracts that are not even in the Marcellus fairway
http://www.tiogapublishing.com/articles/2010/02/24/free_press_couri...

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