Replies to This Discussion

Permalink Reply by Bob Rock on October 13, 2012 at 5:15am

so what would a persons royaltyies be at 18% gross in a 640 or 1280  acre group be  per acre be?

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Permalink Reply by Farmhouse on October 13, 2012 at 9:43am

Assuming you own all 640 acres, here's what I come up with using a calculator that I find to be pretty accurate.

For Gas @ $2.50

640 Acres would be $270,000 per month. $421 per acre.

For Oil @ $80

640 Acres would be 1,728,000 per month. $2700 per acre.

Here's the link to the calculator.  

http://www.mantralandservices.com/PageDisplay.asp?p1=3655

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Permalink Reply by Sylvester Deal on October 13, 2012 at 12:02pm

Farmhouse,

Barrel oil equivalent (BOE) is an annual report and news release impression term.  It is arrived at by dividing Mcf gas by 6 for the "equivalent" barrel.  It's just for reporting impressive numbers, BOE cannot be sold as oil.  Royalties are based on actual liquid volumes of oil/condensate (light oil), natural gas liquids (about 30-50% of oil price), and gas volume, after shrink due to NGL removal.

It's still an impressive amount.

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Permalink Reply by Bob Rock on October 13, 2012 at 1:00pm

thanks guys. hope they all produce like this or better.

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Permalink Reply by Michael Monack on October 14, 2012 at 1:52pm

those are some nice $$

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Permalink Reply by 0agf12owuyn7d on January 31, 2013 at 1:50am

Glad to hear that another good well in Ohio! I have 5 acre's in Beaver township, Noble  county and hope we get a good well in the future! 

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