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 V Miller on August 5, 2014 at 3:10pm
John, look up your well on ODNRs quarterly report. That will definitely give u the amount of day in production for a specific quarter. By comparing your royalty statement and the report, you might get a pretty close idea.
Permalink Reply by David on August 6, 2014 at 3:09am

does yoru state follow rules of apportionment?

Permalink Reply by Jason on August 5, 2014 at 3:18pm
How close are they to drilling around you? They have 14 months to drill or pay you again (they don't want to do).
Can you search closeby wells and get an idea what their unit sizes are? I never listen to what they say but what they're doing. You might be able to located some or all online through courthouse records.
Best of luck.
Permalink Reply by Walter Kurtz on August 5, 2014 at 5:04pm
They like 800-900 acre units. A well across the street is producing 5mcf/day? Sound right?
Permalink Reply by Dexter Green on August 5, 2014 at 5:35pm

5,000mcf/d more likely.

Permalink Reply by RB on August 6, 2014 at 5:22am

3 wells in one unit vs 6 wells in double the size is all the same to you. 

Permalink Reply by INVICTUS on August 7, 2014 at 1:09am

potentially stretches out the cash flow, albeit at a lower revenue rate per acre to you, but potentially longer term of cash flow. There are no guarantees.

Permalink Reply by patrick on August 5, 2014 at 3:21pm

I went from 640 to 1280 last year. The well will be on my property. If you think about how the well must go down then angle into a paying formation , the longer the run the better the % of the lateral that is in the pay zone. I think much of my property  might be out of the pay zone because they plan on drilling 4000ft. down then angleing into the formatiion yet I will get the advantage of the longer runs.

Permalink Reply by The Hiker on August 6, 2014 at 9:33am

Walter:   Depending on where your acreage is located with reference to the unit boundaries, you may get an extra well out of the deal if you go to 1280.   The drillers have to stay 500' off the unit boundary (Ohio), which leaves 1000' between the outside laterals of adjacent units.   If the driller is using 500' between laterals, he could slip in another well if he wasn't constrained by the unit boundary...so you could get 7 or 9 wells instead of 6 or 8 depending on the layout.   Bigger unit/more wells spreads your risk and maybe gets you an extra well.  I think these guys want to drill and get the most out of the ground they can get, and aren't doing this just to tie up more land.  IMHO. 

Permalink Reply by bo boboski on August 6, 2014 at 3:28am

how much per acre,per well are they averaging in lee twp. carroll co.?

Permalink Reply by INVICTUS on August 7, 2014 at 12:32am

Won't be too specific but better than $1k/mo per acre is being produced now very nearby.

Right lease, gross.

It's down there. Believer me.

And they're getting better at finding it and keeping it flowing.

Get your finances and tax professional in order. You'll be busy with that.

Permalink Reply by The Hiker on August 7, 2014 at 12:58am

$1k/mo per acre.....Per well?

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