Royalty amount decline!

My latest royalty check showed a drop of $45,000 from last month. I'm only 9 months into receiving royalties. That's a scary decrease.

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Permalink Reply by Paul Martinelli on July 10, 2014 at 9:56am

First:  Thanks for the great information.

Question:  the 3 wells....are they all laterals in the same formation?

Permalink Reply by Rene Oldham on July 10, 2014 at 9:58am

this is very helpful information- thank you for sharing.  We are scheduled to be in a 648 acre unit in Monroe County but am not sure how many wells yet.  I would guess 3 or 4.  We have 34 acres in the unit.  Are you in Monroe county?

Permalink Reply by Canter on July 10, 2014 at 11:03am

Thanks folks, I was a little afraid to post our results


Paul

Question:  the 3 wells....are they all laterals in the same formation?  

Yes, the wells are in the Utica they all run S E.

Rene

Are you in Monroe county?

Carroll County

34 acres in Monroe, you should have some really nice checks come in. Good Luck!

Permalink Reply by Rene Oldham on August 13, 2014 at 2:06pm

Yes, I am in Monroe County.

Permalink Reply by Nancy LeNau on July 10, 2014 at 3:14pm

Thank you Canter for your helpful information !

Permalink Reply by CNT on July 12, 2014 at 9:29am
I remember getting our first royalty check. It covered several months of production. Then the second royalty check was about one half of the first royalty check.
Review your royalty statement to see if less minerals were sold and for how much and check to see how much was deducted for transportation, and any other expenses company deducted from your royalty check. Taxes are a given, so the company has to deduct for taxes.
Permalink Reply by Curtis Huffman on July 16, 2014 at 10:40am

maybe enough production has paid off the expenses of the well and they just aren't pumping any gas out for now and waiting for infrastructure; foreign markets; new super tankers to be built to take this gas to the EU; maybe they just want to slow production; maybe the well needs to be charged up again...lots of reasons; your company should be able to give you an explanation....just keep in mind, the mail box money comes, but there should be production reports as well; if production is down, you have a vested interest in knowing why.  It is common for producers to pay off the costs of the well and once it is paid, tie it up to the point where, the gas is there,, just not being pumped out....there is a glut on the market now; and they have a hundred years to sell it....

 

Permalink Reply by bo boboski on July 17, 2014 at 10:12pm

"there is a glut on the market now,and they have a hundred years to sell it" .  VERY GOOD POINT.  This is why the production reports aren't worth much for determining the real capabilities of the wells. We may never know what they are really capable of producing. Just have to cash the checks we get and be satisfied with it. It's $$$ we never counted on 3 years ago.

Permalink Reply by Trapper on July 17, 2014 at 11:28pm
Amen Bo. I can only dream of the day when I can say my royalty check DECLINED by $45,000.00 this MONTH!
Permalink Reply by JL on July 18, 2014 at 7:52am

That would be an issue if the check was for $45,000.00 to start with.

Permalink Reply by Zack Jameson on August 1, 2014 at 11:05am

I just received my latest royalty checks from CNX and Noble. The amount has dropped almost $3000 from my total last month. I'll report next month too.

Permalink Reply by rmc on August 1, 2014 at 11:24am
Hey Zack ever any explanation from them as why?

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