$acre/per month

Why cant we come up with some type of average from the people on here actually getting royalty checks. I know every well is different but we should be able to ball park some numbers. 

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Permalink Reply by Rich on May 6, 2014 at 12:48am
Do they have those two wells chocked back do u know?
Permalink Reply by Ragnars Repo on May 6, 2014 at 12:51am
Sorry I don't know the answer to that.
Permalink Reply by Rich on May 6, 2014 at 1:02am
Do they have plans for more wells on that pad do u know?
Permalink Reply by Gusher on April 26, 2014 at 3:17pm

$37 dollars per acre per month per 1% gross royalty in Harrison county

Permalink Reply by Gusher on April 26, 2014 at 3:25pm

Okay folks, I promised production numbers which are provided below. However, I feel compelled to also provide my personal perspective on the production numbers. Many folks have spent a lot of time trying to estimate their royalty amounts. I never did because I thought that was a futile effort, the reason being that all wells are not created equal. I am now drawing monthly royalties from 5 well's. The production variance among these welds is as much as to 200 percent. There are also other factors that must be considered as follows:

1. Is the land fully developed? By this I mean the land in the drilling unit needs to be basically in a rectangular shape with laterals spaced between 400 and 500 feet apart. All my land is not in a drilling currently. The irregular portions were stripped off and traded to another oil and gas company. The numbers below are for a rectangular portion of my land fully developed.

2. The market prices of the hydrocarbons obviously significantly impacts the royalty received. Also, the market price of natural gas liquids is dependent upon the BTU content. Some of the NGL extracted from by wells had a high enough BTU content to command crude oil prices.

3. The Lease terms you negotiated is the most significant factor. Is your royalty gross or net? Mine is gross.

For all the above reasons, I think it improper for me to provide you royalty income per acre. Instead, the number I will provide is $37.11, which is the per acre per 1% royalty I am receiving. Thus, if I had agreed to a 1/8 royalty, I would be receiving $406.87 per acre per month. While the projected decline curve is significant after 2 years, the wells should be in production for some time.............pulled from Harrison county blog

Permalink Reply by Nancy LeNau on April 26, 2014 at 3:44pm

Thank you Gusher !   Al tho I am not in Harrison County ( I am in Beaver County, PA. )  You have provided much important information and hope for Many People.  God Bless you for being so upfront with your information.  Maybe, because of you.. More people will speak up !  Thank you.

Permalink Reply by Jon on April 26, 2014 at 7:38pm
How many wells are in the unit? I'm assuming it's around 640 acres.
Permalink Reply by Philip Brutz on April 27, 2014 at 12:08am
Permalink Reply by Tom R on April 27, 2014 at 3:26am

I think this is a question which seems simple until you actually start getting royalty payments, there are just so many variables.... wet gas vs. dry gas, your lease terms, companies partnering in the well and their participation %s, unit size, number of wells producing, choked or full delivery, time in production (aka decline curve), market price variability, etc., etc.

With that said, here is what I've seen. I am in a dry gas area in PA. My lease is 18% with Market Enhancement clause. Unit is 631 acres. Only one well, has been in production 11 months (3/13 to1/14). List below is the monthly $/acre net payment I've gotten

$81.49
$149.93
$114.39
$102.17
$39.70
$59.17
$61.86
$55.13
$47.72
$54.95

$113.00
Permalink Reply by Todd on May 1, 2014 at 12:48pm

Tom,

What is your effective gross percentage after the market enhancement deductions are taken? 

Thanks for your help,

Todd

Permalink Reply by Tom R on May 2, 2014 at 2:09am

It is a bit different from month to month and from company to company, but averages around 14% of the gross proceeds.

Permalink Reply by Todd on May 6, 2014 at 5:07am

Thanks again Tom!

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