does anyone have info on these new wells[clinton sandstone} being installed in a 160 unit?
if u r in a 160 unit, is it the only amount of acres u have in the unit or is it the percent of royalties u own and they take the money they make and just give u that percentage over a whole? Do these wells produce like a deep well utica well? is anyone recieving royalties from one of these new clinton wells installed
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Replies to This Discussion
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Permalink Reply by 0i7okn54zwbdo on
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Your royalty is based on the pro rated share of your acreage within the unit. No, they don't pay like a Utica well but there have been a lot of great Clinton wells in Ohio and having a new one is certainly not bad when you consider the first few years royalty checks will likely be decent money. You won't get rich having a Clinton well on your land but royalty income--even when it doesn't make you a millionaire--shouldn't be looked down upon.
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Permalink Reply by Jim Hujer on
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ok-thanx-so if i own 12 acres in a 160 acre plot (clinton sandstone) i divide 12 into 160 and will get that % based on my 12.5% royalty. I actually did hear that these wells in the first few years can do just as good as a deep well that is producing-- just say that this well is producing $10,000 a day what would be a good guess for my royalty per month?
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Permalink Reply by TM on
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10,000 a day on a Clinton well? Is this what it is producing or a hypothetical question?
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Permalink Reply by Trapper on
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IF your well puts out $10,000.00 per day in production:
12/160=.075
.075 x $10,000.00= $750.00
$750.00 x .125 (12.5%) = $93.75 per day ($7.81 per acre per day)
Of course this figure doesn't reflect any deductions...........
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Permalink Reply by Jim Hujer on
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thanks-lets hope for $100,000 a day !!!!--Its nice to dream--by the way has anyone heard of these new clinton wells going in?
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Permalink Reply by David Cain on
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Jim,
Trappers' calculation looks good to me and there are some very good people that have already given a response. If I were you though, my concern would be that this shallow clinton well will probably hold your 12 acres (and perhaps more if you own more than 12 acres) by production (HBP) depending on how your lease is worded. I don't know if your property is in the Utica or Marcellus areas or not, but that is where the big money is. This new clinton well could end up preventing you from signing a future lease at a higher bonus/royalty percentage. I don't want to rain on your parade, but I would go back and look at the lease and see how this will affect you. But listen to others on this site - they know a whole lot more about this than I do.
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Permalink Reply by Jim Hujer on
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I have an old lease from the 1970's because i have an old gas well on my land now that is only producing about a $1000 a year--A new well is supposed to go in on neighbors property(over i believe 1000 feet away from my old well line as the law states) and cross the street to mine--I was told they had their leases amended and mine stayed the same since the well was not on my property. My existing lease agreement stays effective.The new well is over 160 acres and i will have about 14 acres in it.
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Permalink Reply by TM on
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Who you leased with on the shallow well? Have you ever been approached to lease the deep rights for a Utica well yet?
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Permalink Reply by george m vietze on
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Heard that Billman Geologic Consultants are talking about horizontal drilling
with natural fracking in upper devonian sandstones, supposedly has good
results.
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