Royalties >>> How much per acre in a monthly royalty check

How much per acre in a monthly royalty check ? Certainly it would depend on a few or maybe many factors ..... but give examples if you have them please.
If someone has the figure for drilling in a section ( say about a square mile or 640 acres ) and how many wells were drilled ( horizontal or verticle ) we could then do the math for the size of our acerage included in the section. Or for others who may own many sections etc.

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Permalink Reply by Red Ridge on December 20, 2009 at 3:26pm
Found a calculator >>>> new question >>>> how many wells are typical per section
Permalink Reply by hunter777 on December 28, 2009 at 4:11pm
Here is a realistic example from NE Pennsylvania:

160 acre unit
15% royalty
5 MMCf/day initial production
$5.00 gas price

Using any royalty calculator:

Monthly income for the entire unit is $110,250
Divided by 160 is $689/acre

Remember that royalties can increase if the price of gas goes up,
and WILL decrease WHEN the production declines.

Hope this helps
Permalink Reply by Jeff Ferreira on December 28, 2009 at 4:21pm
Cool I like your answer. We have been waiting for so long it seems. Thanks and Happy New Year
Permalink Reply by Dolores Chobert on December 31, 2009 at 6:32am
Is that per well also?
.
Permalink Reply by hunter777 on December 31, 2009 at 12:07pm
An example from Chesapeake territory:

If the acreage is 640 acres
6 wells at 5 MMCF/day=30 MMCF
15% royalty
$5.00 gas

$684,000/month for the entire unit
Divided by 640 is $1070/acre.

Hope it helps
Permalink Reply by alexandra on January 8, 2010 at 12:24pm
So the final number for the landowner would b e $1070/acre times 15% equals $160.50 per acre a month. Is that correct?
Permalink Reply by Brian on April 24, 2010 at 11:18am
If you go by what hunter said, it is 1070/acre/month for the landowner. That is only if you are in a producing unit with 6 wells producing 30MMCF though.
Permalink Reply by hunter777 on April 24, 2010 at 11:58am
That's correct, most good production horizontal wells with a "conservative" size unit should provide the landowner with $800-1000 per month per acre in the unit. Keep in mind that figure is for the first month, it will be less after depending on the decline of the well, or maybe more if the price of natural gas takes off.
Permalink Reply by Henry J. Cittone on February 24, 2012 at 7:12pm

thank you hunter!  I'll post my numbers as soon as I get a divsion order.  We have I assume 3 wells in our unit since there is a north unit and a south unit and we are in the "north" unit.

Permalink Reply by Clinton44 on February 25, 2012 at 3:00am

I think hunter777's figure might be a little high per acre seeing as gas prices have fallen since his post in April of 2010. We have 42 out of our 96 acres in a drilling unit with five producing wells and our first check for production in Nov. and Dec. of 2011 was in the $20,000.00 range which translates into about $240.00 per acre per month.

Of course the more acreage within the unit will increase you per acre rate.

Permalink Reply by Clinton44 on February 25, 2012 at 3:38am

I have a correction on my figures above, I forgot our lease holder has a partner in the venture that pays us royalties as well. Each is responsible for paying their 50% which would bring our per acre royalty up to $480.00 per acre in the unit, and the price they sold the gas for during those two months was $3.61

Permalink Reply by Jeanette Carrier on April 24, 2010 at 7:19am
Does anybody know what a "division order" is?

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