Royalty Utica Hubbard H3 well in in Brook County

Just wanted to let everyone know that that Utica Hubbard H3 well in in Brook county is paying $ 65.00 dollar royalty on 11 acres of land  and that is at the well head with no deductions and 18 %. I think we are we are being shafted.  Southwest will not return my calls to answer question on my statements and they appear to be no better than CHP was. Is there anyone how can help get some answers as to what is going on with this well? Any help would be appreciated.   Buy the way.   Yesterday I was offered 60 k for my royalties and the guy knows what it is producing !  What's up with that!!!

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Permalink Reply by Joseph-Ohio on June 9, 2015 at 8:10am
Good luck we need it
Permalink Reply by Joseph-Ohio on June 9, 2015 at 7:02am
He wrote and said it was $65.00 a month royalty for his total 11 acres.

He also said he was offered $60k for his royalty payments and that it would calculate to an ROI of about 77 years (if nothing changed).

Who would do that unless they knew they would recover much, much earlier ?
Permalink Reply by Bill Barnaby on June 9, 2015 at 8:10am

 A fool and his money are soon parted. Chances are the guy offering is not a fool.

Permalink Reply by Joseph-Ohio on June 9, 2015 at 8:12am
We agree.
Permalink Reply by kat on June 9, 2015 at 8:40am

I have 40 acres in Brooke cty, I am not in a unit, I have had 5 calls from different companys in the last 2 days, wanting to buy my lease offers range from 2000 to 6000 an acre.  Something is up??  as far as your 65 for 11 acres could it be they are holding back to get you to sell??

Permalink Reply by Joseph-Ohio on June 9, 2015 at 8:55am
I wouldn't call it a ridiculous (or even a singular) motive / consideration

Idon't think anyone can rule out that / many other motives / considerations.

Whether or not it is the only / singular motive / consideration can't be determined.

Time ought to tell all I would think.

All only IMHO.
Permalink Reply by Todd on June 9, 2015 at 9:35am
Permalink Reply by Joseph-Ohio on June 9, 2015 at 10:07am
Looks like the 'Hubbard 3H' is a Dry Gas Well as no 'Liquids' are recorded in the presentation.
Permalink Reply by Ronald Raymond Burda on June 9, 2015 at 11:43pm

Hard to say but I am holding on for now

Permalink Reply by Todd on June 10, 2015 at 6:54am
Ron,

DO NOT SELL your OGM rights!
Permalink Reply by Paul Butler on June 12, 2015 at 1:00am

Just because someone made an offer to purchase, that doesn't mean a closing is likely.

Many a slip between the cup and the lip!

A common strategy employed by mineral buyers is to make a large offer up front.  Later, the mark is told that, for one reason or another, the initial offer was a mistake.  They then make a much smaller offer.

What did the production consist of?

methane (CH4);

Ethane (C2H6)

Propane (C3H8)

Butane (C4H10) 

The SWN investor package said this well is doing 8 million  day.  If you figure 166 barrels of oil per million cubic feet of gas--this well is a race horse (1328 boe/d).

$65.00 for 11 acres in a unit doing 8 million a day?

That's terrible.  What happened to the money?

I smell a rat!

Permalink Reply by Joseph-Ohio on June 12, 2015 at 1:23am
Paul,

So, I'm reading that the $60k might be an initially high offer issued to bait the owner into a negotiation and then later perhaps retracted followed by a lesser offer ?

That might be a tact in any negotiation to buy however as the object is to purchase for as little as possible.

However, I'm thinking chances of that scenario actually occurring would be pretty slim myself.

Just my guess.

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