Royalties...finally
Finally started getting our royalty checks from Chesapeake and Stat Oil. I was a member here before but nothing was happening with our property and all everyone was offering was conjecture and hearsay. The checks we have gotten from our well in Bradford county are really not that good. We must have gotten an average production well. We have 15 acres in two units and the on that is producing is about 9 acres and the total checks between the two oil companies total about $1500 dollars for three months of production. The gas prices they sold the gas out was well below the well head price that you see on tv or on Marcellus shale forum. The gas was sold for over $1.50 less than you see everywhere and the amount chespaeake takes out for production is between 34-38 per cent which is ridiculous. Hopefully, the price of gas will rise in the future to give us a little more in royalties. Just wanted to post this because when I was a member before was kind of upset that no one would say what they were getting and told myself when i received royalties I would share the info. Really thought we would be in for a windfall but I guess it all depends on the output of the well and the thing is we only have one well drilled on the pad and it doesn't look like more wells will be drilled in the near future. Just have to hope the other unit I am a part of will produce better. If any one has any questions feel free to ask. Thanks
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Replies to This Discussion
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Permalink Reply by daniel cohen on
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Eric, If Matt Santiago is correct it will require a very careful eye to be kept on what you receive to make sure that one is being paid in accordance with the lease. As I read Tico & LW's replys, I am reminded that we as landowners try to treat each other as neighbors, but that the O/G companies are a business and not neighbors.
As such, we need to hold them to the letter of the lease, and not merely accept that they will do the right thing. Hopefully of course, they will-but their record to date casts questions upon that.
Dan
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Permalink Reply by LW on
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update- We will be receiving royalties from 4 companies, the division orders don't make sense to me for two of them as far as net royalties, but the amount works. Our first checks include 3.5 months. ( I think) They average to $72.00 per acre, per month after deductions, no taxes withheld.
(12.5% with deductions)
However, the last month, October is 2/3 the volume of August and September and is approx. $62.00 per month, per acre. I don't have everything yet, but did talk to Anadarko. They were able to tell me who owns what for all of it. So the above is calculated based on their input, not actual received checks.
For Chesapeake - July - $2.60, August - $2.83, Sept. - $2.47, October - $2.88 .
October deductions are about 21%. ($0.58 of the $2.88 price)
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Permalink Reply by Clinton44 on
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LW
Glad it is working out for you!
If I may ask what state and county is your acreage located in. You might have mentioned it before but I didn't feel like reading through the ten or so pages of posts...
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Permalink Reply by Tico on
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LW, did you say you haven't received any checks at all to come up with the $72 per acre, it's just calculated? Thanks
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Permalink Reply by LW on
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No, I received Chesapeake and Statoil checks. Division orders for all 4. But I do want to make it clear that I do not have Anadarko and Mitsui checks yet, so deductions could be higher, prices lower, etc. Perhaps it is too soon to post.
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Permalink Reply by Tico on
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Thanks, LW, I guess your wells are Chesapeake and stat oil bought into them as ours were, have you found out if the wells are running at full production, I have called and they really don't give an answer, I figured that from our first checks that we got that the well was producing about three million cubic feet a day and called them about it and they said yes that was full production, kind of got the idea they didn't know, and then I got the paperwork from statoil and they had more producing gas from the same well,, hopefully they re restricting the output and it's producing better, the second check we got for October chesapeakes numbers were down to one million cubic feet a day, did you figure yours at all,, ,,
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Permalink Reply by LW on
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No, I didn't and one thing I am not sure of is if the October is the full month of October. Maybe it is heading lower. The well details are for the middle of the month. Are yours for the end of the month? I will wait to post until I get more definite information. I do not have a handle on the calculation from the Division orders and have relied more on what Anadarko said about the split and the check details from Chesapeake. We do not have details from Statoil, just a check and the DO. Anadarko has said that we might not see a check until next month and then it will be a catch up with us always being 2 months behind.
Right now, I am calculating to the $2.00 a day average, while you are less than $1.00 a month. We could be heading that way also with the next check. Huge difference! Remember when people were posting $10 a day, per acre average back in 2010?
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Permalink Reply by Tico on
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Not $1 a month,,, we got checks totaling $180 for one month, that's 9 acres, that's after deductions and royalties, so 9 acres x $1 a day is $9 x 30 days is $270' then after deductions, came to about $180,, sorry if I confused,,,
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Permalink Reply by Tico on
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Received our October checks from stat oil and Chesapeake,, think it works out to about a dollar an acre for the month,, really sad when u think about it,,
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