Too bad the selling price of gas isn't higher

Even with the low selling price of gas I'm getting $165.00 per acre for royalties. (as of my latest royalty checks) Imagine the amount if gas was around $5.00 !!!

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Permalink Reply by Rich on October 6, 2015 at 12:34pm
Hey Zack,
Can I ask what your Roy. % is
Permalink Reply by Zack Jameson on October 6, 2015 at 12:49pm

My percentage is 18....with no deductions of any kind. They've held true with the no deductions.

Permalink Reply by Jason Cooper on October 7, 2015 at 1:57am

Where is your property located?  How long has it been since the well was put into production?  

Permalink Reply by Zack Jameson on October 7, 2015 at 3:41am

Marshall County, WV in the Majorsville, area. Wells in production for 2 years now. 11 wells in the 1240 acre 'super unit'. The production hasn't been sold. The driller was Noble. I leased with CNX, but they then partnered with Noble.

Permalink Reply by Zack Jameson on October 7, 2015 at 11:24am

When I said the production hasn't been sold....meaning hasn't been hedged.

Permalink Reply by Hopeful on October 8, 2015 at 2:55am

IMO, whether a producer hedges or not has nothing to do with your royalty check. They do not pass along hedge profits/losses to royalty owners.

Permalink Reply by Paul Butler on October 7, 2015 at 2:58am

Was the production sold having been hedged?

What was the sales price per mcf and bbl?

It's on the stub.

14xt4y4cj053cPermalink Reply by 14xt4y4cj053c on October 11, 2015 at 11:08am

Our royalty is 12.5 with no deductions and it cost us $305 for Chessy to take it off our well.

Permalink Reply by Jason Cooper on October 12, 2015 at 1:52am

Our problem in Appalachia is oversupply and infrastructure and until those problems are solved, our prices will be stuck on stupid.  I read an article the other day saying there is 10 Bcf/d of Marcellus gas waiting for infrastructure and price improvements.  To put that in perspective, right now total Marcellus production is right around 16 Bcf/d, meaning we could increase production by over 60% at the flip of a switch.  That's only going to push our prices lower.  It seems they cant build pipelines fast enough to cover the pace of drilling. The full article is here.

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