Royalties...finally

Finally started getting our royalty checks from Chesapeake and Stat Oil. I was a member here before but nothing was happening with our property and all everyone was offering was conjecture and hearsay. The checks we have gotten from our well in Bradford county are really not that good. We must have gotten an average production well. We have 15 acres in two units and the on that is producing is about 9 acres and the total checks between the two oil companies total about $1500 dollars for three months of production. The gas prices they sold the gas out was well below the well head price that you see on tv or on Marcellus shale forum. The gas was sold for over $1.50 less than you see everywhere and the amount chespaeake takes out for production is between 34-38 per cent which is ridiculous. Hopefully, the price of gas will rise in the future to give us a little more in royalties. Just wanted to post this because when I was a member before was kind of upset that no one would say what they were getting and told myself when i received royalties I would share the info. Really thought we would be in for a windfall but I guess it all depends on the output of the well and the thing is we only have one well drilled on the pad and it doesn't look like more wells will be drilled in the near future. Just have to hope the other unit I am a part of will produce better. If any one has any questions feel free to ask. Thanks

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Permalink Reply by Tico on December 1, 2012 at 1:32pm
Sorry my reply was to JK
Permalink Reply by JK on December 1, 2012 at 1:36pm

Tico,

What I am saying is CHK pays royalties for gas production 3 months late or 3 months later.

 

Permalink Reply by Tico on December 1, 2012 at 1:41pm
O, ok, thanks, I knew that, thankyou
Permalink Reply by Kathleen on December 1, 2012 at 1:56pm
I'm just posting this if new people come and and find this interesting thread.
Payment of royalties are based on what your lease calls for. My lease says the 1st check is issued after 90 days than there after every calendar month.
Permalink Reply by JK on December 1, 2012 at 2:07pm

Oh yeah Kathleen, it's always 90 days post gas production.

In other words, they are late constantly.

Permalink Reply by Deci Ruiz on December 1, 2012 at 1:53pm
Thanks for the info we have 12 acres in Bradford too and live in NJ. We know we are in 2 units and are looking at 8 wells maybe 11 if your check is for one well maybe this will get better as more wells come online. Good luck and when we start getting checks I will post too.
Permalink Reply by Tico on December 1, 2012 at 2:00pm
I really don't expect Chesapeake will fully develop all their pads with the amount of laterals they originally planned for,I think they have too much land that they leased that they have to lock in a these leases with one well on each pad, and the feeling that I get from talking to agents in Oklahoma and towanda pa.that they're not in any hurry to come back for more laterals
Permalink Reply by JK on December 1, 2012 at 2:10pm

Tico,

CHK will only drill to keep from losing leased property and from the DEP permit deadlines.

Permalink Reply by James T Monyak on December 1, 2012 at 2:23pm

CHK will drill more wells per unit as the price of NG goes up.  There is a cost to coming back to drill more wells.  However, as you noted there is a significant cost with losing a lease.

Permalink Reply by JK on December 1, 2012 at 2:31pm

JTM,

I receive all of the permit notices for WVDEP and I can tell you there are literally thousands of new permits issued for mostly Marcellus and a few lateral wells.

In order to keep up with the permit timelines, those of us already leased will be waiting a very long time for further development of our minerals.

I figure at least 5 years out if we are lucky.

 

Permalink Reply by jonathan M. on December 3, 2012 at 4:16am
Matthew,

Thanks for sharing. Out of curiosity were you offered to sell your minerals before the wells were drilled? Reason I ask I have some acreage in relatively unproven area of utica (western guernsey) and have fielded a few offers to sell. Just looking to hedge my bets a bit.

Thanks
Permalink Reply by James T Monyak on December 3, 2012 at 6:12am

How many acres is the unit and how many wells on the unit. CHK tends to just drill one well when there can be up to 14 wells per unit.

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