I'm a landowner trying to estimate the production per surface acre for producing Utica wells in Ohio. I have the 2011 production figures from DEP, but cannot find the unit size for each well. Anyone have those, or know where to get them? The length of the lateral bores would be a handy stand-in, assuming that each bore gathers product from a 1000-foot wide strip of the formation. So, lateral lengths or unit sizes...anyone know where to find that info?
Hi JD, Most laterals are coming in at about a mile in length. Some are longer. Enclosed is an example. If you're handy, unlike me, I think you can pull them off the ODNR website. This example has a width of slightly over 1000 ft... and a total area of 153 acres.
this unit is what is submitted for the permit. I'm sure there is a unit of who will share the royalties that is a lot larger than this. These units are filed in the county recorders office.
Good point, I guess it depends on if they are part of a land group or not. I guess they wouldn't necessarily need to disclose that for the sake of obtaining a permit?
Thanks to all. Helpful. Kathleen, your link helped me find the link below, which, as you suggest is a pain to use. If you are used to working with Excel, click on the Excel link as soon as you see it. MUCH easier to search and use, and you can download the entire database. Start by clicking Menu, then County Engineer's List; don't use the filters at all, then click Report, and then Excel.
So, I took the 2011 production numbers from ODNR for each of three wells in Carroll county, and put them together with the DU_acres number for each well from the county engineers database, and assumed $3/Mcf (gas) and $85/barrel for liquids, and I get an average royalty of about $3,700 per acre per year at 12.5%. Is that correct? If you have a 500 acre farm, that approaches 2 million a year in royalties. That can't be right. What am I missing?
btw, the same calculation for the Buell well in Harrison County comes out to 3.6 million PER YEAR for a 500 acre farm, just in royalties. Gotta be wrong.
If you are counting on 10,000 per acre per year, you will probably be extremely disappointed
Thank you Kathleen. That helped. It's pretty complicated for a newb like me, but I think I have it. You only get royalties for your acreage that is IN THE UNIT, which is surveyed on a map. In a large unit like the new 1,280 acre units, every acre in the unit gets royalties, even if the drill is not under my land. If the company drills all six laterals at once, every owner gets huge checks until the well is dry. If they drill the laterals one at a time, waiting until the previous one starts to slack off, then every owner in the unit gets smaller checks, but they get them over a much longer period of time. In the end, it's the same total money, assuming prices don't change.
The companies prefer to drill one lateral at a time, because they can show the futures markets that the product is there, and that increases prices. Basically, my numbers were correct, but the money will be spread over a lot more years, with only about 1/6th of my numbers coming in each year because the royalties from one lateral are spread over a six-lateral unit. Later, a different lateral will be spread over the whole unit, etc. So I get about $7,000/acre/year in a 200-acre, 1-lateral unit, over the life of the well. In a 1,280 acre unit, $1,200/acre/year for a longer time, unless they drill all six laterals at once, then more like $7,000/acre/yr.
If someone out there thinks I'm wrong, please pipe up; I'd love to be corrected if I'm off here. If no one does, I'll consider my question answered. Thanks everyone!