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 L O'Grady on January 24, 2010 at 8:47pm
Pam, are you in negotiations with Chesapeake? We are and they are not offering us that much. If you don't mind me asking, what township are you in? We are also asking for that as well, among other things.
Permalink Reply by Pam S on February 2, 2010 at 8:53pm
O Grady,
I just signed with Fortuna. I started the negotiations with them in Oct of last year and went back and forth a lot. There was an issue as to the % we owned. After the first of the year when we finally got things figured out, they pulled the offer saying they were no longer interested at this time. My lawyer talked to their lawyers and we got the deal. The landman I talked to told me that my lease was the only one that Fortuna was doing in PA for 2010 because they want to focus on developing what they already have. Whether or not this is true, I don't know but I do know of one other person who had his offer pulled by Fortuna as well. When I first looked into leasing back in October, Chesapeake offered me 3,000 per acre and 20%.
Permalink Reply by Jean Michel LeTennier on January 12, 2010 at 2:24pm
HI Ruby,
you are (from what I gathered) correct, but Range is basing it results in Western PA, not NE PA where they are seeing rate as high as 7MCF and higher... one actually hit 18mcf
As I said earlier, they are not coming for no reason ;-)
Permalink Reply by Jeanette Carrier on August 19, 2010 at 11:35pm
What do those acronims stand for?
I see several different ones
mmcf
mcf
mmfd
bmcf
and so on. I think there might be a big difference?
Permalink Reply by L O'Grady on January 12, 2010 at 2:50pm
Ruby, thank you for your info. Can you please tell me where your numbers are from?
I have read and heard so much, I need to know where numbers like these are coming from before I sign, if you don't mind. I especially don't understand the 1000 x 2 (the numbers in the middle of the equation)??
Permalink Reply by L O'Grady on January 12, 2010 at 3:08pm
And can you please tell me where the royalty percentage comes in?

I didn't think it was $300,000 per acre, I thought it would just be $300,000 and then you would only get 15% or 20% of that, depending on what your royalty percentage was.
Permalink Reply by L O'Grady on January 12, 2010 at 3:26pm
Ruby, thank you very much!
Permalink Reply by Jean Michel LeTennier on January 12, 2010 at 7:02pm
Hi Ruby, LOgrady,
I assume this is where you are getting your info from besides Cheasapeake Presentaion. but most of what you are seeing there is mostly from Vertical wells, not horizontal..
http://www.marcellusshales.com/marcellusshalecompanies.html

Now Look at these and you will see conisderable disparity between what they tell the land owner and the Investor... I am actually both.
http://snipsly.com/2009/12/19/marcellus-shale-gas-wells-production-...
http://www.cnxgas.com/DefaultPage.aspx?pgid=34
http://www.wealthdaily.com/articles/marcellus-shale-formation/1296
http://blogs.oilandgasinvestor.com/peggy/
Keep in mind , it is in the interest of the Gas company to minimize the value of what they are trying to lease... check this file more info and these are very early results..
Attachments:
Permalink Reply by Jean Michel LeTennier on January 12, 2010 at 7:51pm
Permalink Reply by Jean Michel LeTennier on January 12, 2010 at 8:06pm
more...
http://www.miningtopnews.com/cabot-oil-gas-provides-marcellus-updat...

http://www.prnewswire.com/news-releases/ultra-petroleum-announces-t...

you will see, what they are telling landowners and what is happening is completely differant..
Permalink Reply by Jean Michel LeTennier on January 25, 2010 at 12:28am
L'Ogrady, we are in Sindey NY, I don't kwow where Pam is.. we have a geologioc strata here that goes down several thousand feet with at least 7 known shale layers as compred to PA. 1-3 layers...
that may be a price differentiator or not...
Permalink Reply by Pam S on February 2, 2010 at 8:57pm
Burlington township Bradford County, PA

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