Replies to This Discussion

Permalink Reply by nc man on July 31, 2024 at 7:27am

Yes, I, too, would like to know anything about royalties. 

i have no idea what is paid, on the average, per month.
I have yet to get drilled but maybe close to drilling.

I would really like to know an average figure that is paid for royalties?

Is the amount t, or under a hundred a month or more/less.
Appreciate it.
Ty! ncman

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Permalink Reply by David Cain on August 1, 2024 at 1:49pm

nc man,

I heard that there was a pad or two going in around skull fork road (Guernsey county Ohio) and thought of you.  I hope you get drilled soon.  At the beginning, I have heard people say they get anywhere from $500 to $3,000 per acre per month in royalties.  It seems like the numbers most often mentioned are in the $800-$1,000 per acre per month range.  But that will fall off quickly and dramatically.  I have been told these numbers typically only last the first 6-10 months.  By the second year you will get about half or less what you were getting the first year.  And it keeps declining rapidly.  I was just hoping that someone that has first hand knowledge could say what is happening after 5 or even 10 years.  Is it $5 per acre per month or $50 per acre per month?  I have no idea.  Unfortunately, I think most of the people that could answer this question are no longer very active on the site.

Hopefully, we will be able to answer this question ourselves in the near future.  I have wells going in to my east and also to my west.   Maybe my land will get put in a pad soon.

Good luck to you

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Permalink Reply by nc man on August 8, 2024 at 10:38am

David—

Hope all is well with you!
Thank you so much for sharing your figures with me!
I didn’t have a clue on any range, hopefully, one day, I might benefit with my mineral rights.

i will be most grateful for whatever, that might, be rewarded to me. 
I thank my parents, especially my Mom, who insisted my father not sell the minerals, just the land.

I am thinking, my per acre amount, might be a nice amount, due to the , literally, a ,few dozen land men, that have been contacting,  me, wanting to buy my minerals. 
one offered me 1/2 million for my 26 acres! 
Not much $$ to some  but it had me thinking but decided to take my chances, with ascent, after all this time of waiting.
Hey, David, I wish you  the best on your drilling and if you get an answer on your 5-10 year question, I hope I see it posted.

Take care!
Be safe!
ncman

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Permalink Reply by Massey colt on August 13, 2024 at 3:56am

I can give you information on wells that are 3 years old. However, royalty per acre is not just based on production, but also on price. Three years ago we were getting over $8.00 per unit (MBTU), now we are lucky to get over $2.00. So prices have crashed. Production is at about 10% of where it was. So to answer your question, we currently are getting about $50.00/acre. It seems to have stable production at this point. 17.5%, no deductions.

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Permalink Reply by farmgas on August 13, 2024 at 9:42am

Sounds like we all need to show patience for awhile until market prices improve.  Unfortunately that might be a long time in coming.  Signs seem to indicate the next few years will be better then the past few for prices.  For the older members of GMS like me,  maybe it`s time to look beyond our lifetimes to receive quality gas prices, and consider how to set up our families future when prices might be more stable & higher.   Good luck to everyone!

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Permalink Reply by David Cain on August 14, 2024 at 2:13pm

Massey,

Thank you very much for sharing.  I was not aware prices had dropped so much in such a short period of time.  I had heard that production drops off dramatically and quickly.  Your information helps paint a picture of what may occur.  Much appreciated!

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Permalink Reply by nc man on August 23, 2024 at 6:08am

Yes, thank y’all!

Much appreciated for your time and info.

At least we have an idea of where we stand now.

ncman

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