Let's Get Real - How Much Might I Make???

Hi! Newbie here. I have five acres near Senecaville. Lease is signed, up front payments have been received, and the rig is going up as we speak. Here's what I'm wondering... I've looked at the "royalty calculators" and all that kind of stuff. I know my royalty rate is 20 percent, and that the wells in the area seem to be quite successful. (The monster in Monroe County isn't far away.) Does anyone know how much I might ACTUALLY receive in the first year? Does ANYONE have an actual royalty check in their hand? They're saying these are great wells, wet gases, even good amounts of crude. WHAT DOES THAT MEAN TO A GUY WITH FIVE ACRES IN REAL TERMS? Someone told me that I might make $300,000 in the first year. Not buying that. Some things I've read here say I'll make sixty bucks an acre. The guy from Antero told me to expect "$31,300 per year over the average life of the well, 20 to 40 years, but frontloaded" WHAT IS THE TRUTH? Any insights would be great, particularly from someone who has ACTUALLY RECEIVED a royalty check. Thanks!

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Permalink Reply by Thomas Morris on October 15, 2013 at 8:52am

Hello, I*m Thomas M-I joined this site several Months ago-and has a mother that received her first check from HG ENERGY a couple of weeks ago for $1100.00 -Our family is quite large and signed the first lease with Penzoil in 1897. there are actually two leases on two farms. My Great uncle had nine children-so our percentage is small-We do not think that this is a monthly check-but we do know that when we got the first set of papers I hired an attorney in Marshall County that is honest-[John Chase IV] I grew up with him-and read up on the basics of what to do-[and not do] I*m guessing that our family of 160 has a stake in this-and hope that this helps. I did not get to see the whole statement-We got $100.00 to sign on anytime a letter was sent-since we have a large family-there was little reason to try for more.

Permalink Reply by Chris on October 9, 2013 at 3:36am

I'm not sure retiring with 5 acres is good advice.  Don't forget you will lose close to half your money to taxes

Permalink Reply by bo boboski on October 9, 2013 at 8:31am

wet gas /condensate/oil/propane/butane/ethane  8000 B.O.E.D. Peak Rate, one lateral.  4/5 more to come when that one fizzles out!     Let's just wait about a year, then we'll see.

Permalink Reply by bo boboski on October 9, 2013 at 10:14pm

yontz  and rubel  wells

Permalink Reply by Billy Park Whyde on October 9, 2013 at 4:15am

With only 5 acres , don't quit your job!

Permalink Reply by Paul Martinelli on October 9, 2013 at 6:06am

I'm betting you'll get closer to $1000/month per acre than 25K

Permalink Reply by Paul Nickels on October 9, 2013 at 8:13am

This sounds realistic to me...

Permalink Reply by Paul Nickels on October 10, 2013 at 2:48am

You bet I'd take that, Rick! I'm 60. If I got 300 grand, one time, my work career is over. It would take me more than six years to gross that at my current job. That takes me right to 65, and maybe gets me a nice vacation while I can still walk around :-)

Permalink Reply by Gerry Gross on October 10, 2013 at 5:04am

I wish they would come punch a hole in my property in noble county.

Permalink Reply by Booger on October 10, 2013 at 8:04am

Paul - here are some real numbers.......brother of mine has 5 acres in a 600 acre unit in eastern Carrol cty, Lee twp.........single bore that has been producing since last year (tanner well).........all dry......it produced 300,000 mcf in 75 days last year (or about 4,000 mcf/day).........he is getting around $800 per month for all 5 acres.......15% royalty.........gross language but not sure if they are stealin (chk).

 

Permalink Reply by robert c miller on October 10, 2013 at 9:19am

My first check from Gulfport was about 60 dollars a day.My percentage is 15 1/2 % and I have 22 acres.Most of the amount was from oil.

Permalink Reply by Busy Bee on October 10, 2013 at 1:06pm
Robert was it $60 per day per acre ? Or $ 60 per day for all 22 acres ? Thank you in advance for sharing with us . It's difficult to get those who are receiving royalties to come forward . They usually clam up !

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