Royalty $ per acre

I know it varies greatly, but Anyone already receiving checks have any insight on per acre per % royalty #s? Leased with 20 %.



Thanks!

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Permalink Reply by Al Cramblett on August 1, 2014 at 4:07pm

Harrison County, Ohio: $25.30 per acre per percent of loyalty. If I were to be so fortunate as to have a 20% royalty, by royalty check would be $506 per acre.

Permalink Reply by John on August 1, 2014 at 4:12pm

thanks for info! so that is per month correct? How long have you been receiving checks?

Permalink Reply by John on August 1, 2014 at 4:12pm

and how many wells is that for?

Permalink Reply by Al Cramblett on August 1, 2014 at 5:39pm

John, Please go to the Harrison County, Ohio webpage to get the detail you're seeking.

Permalink Reply by TJT on August 2, 2014 at 10:54am
You get 1 percent royalties?! Is that correct?
Permalink Reply by Carl Krebsbach on August 2, 2014 at 12:30am

I heard from a fairly reliable source - considering the rumors that are surely flying around -  that a landowner in SE Ohio recently got a royalty check for a month and a half of production that came to over $6,500/ acre.  I don't know what sort of % was agreed upon.  That is quite a bit higher than my most optimistic estimates based upon production reports from the best producing wells.

Take it for what it is worth, which is really nothing; it is just something I heard; nothing to vouch for the claim.

Permalink Reply by bo boboski on August 2, 2014 at 8:51am

That doesn't really surprise me. You take a well that is producing 500 bbl oil per day, plus a good flow of dry gas, plus being able to sell the ethane/propane/butane. @ 20% with with no costs or royalty theft going on; I'd say yea, possible! probably Guernsey/noble area.Or Monroe in a triple play well?

Permalink Reply by evan on August 2, 2014 at 9:33am

A friend of mine recently got his first royalty check.  There are four wells in this unit, right around 600 ish acres.  These are pretty decent wells supposedly .  His first check was unreal because they hold the first one back for a few months.  It turns out to close to 3000 an acre a month. I could live with that. 

Permalink Reply by RB on August 2, 2014 at 11:10am

pretty good! if it drops by 80% later on, that is still 600/acre/month

Permalink Reply by Laura on August 3, 2014 at 7:54am
Thanks for the info! Is that the total for all 4 wells and 20%?
Permalink Reply by evan on August 3, 2014 at 8:07am

Yes Laura it is , other people I know who are in a different unit with 5 wells drilled are getting close to 4 grand an acre a month. So it's pretty accurate. This is Guernsey county by the way..

Permalink Reply by The Hiker on August 2, 2014 at 10:08am

OK, here's some verified numbers; I've seen several royalty stubs from different people representing production for September and November 2013 for one unit, and Jan- Feb- March 2014 for another unit.  Both units are in SE Ohio.  Both sets of stubs represent the first payments to the landowners.  The average for all payments combined for both units is $18/month/well/acre/% for a ~600 acre unit.   Translating; If you had a 20% lease, your share of the (gross) production would be 18 x 20 = $360/month/acre/well.   If you had 40 acres and 3 wells hypothetical, your share from the unit would be 360 x 40 x 3 = $43200 per month.  You can do the math and subtract deductions (?) for your own situation, but these are good AVERAGE numbers for SE Ohio in the wet gas window (individual wells varied by +/- ~$5/acre/well/mo/% from $18).

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