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 jason irvine on August 13, 2014 at 10:37am
I am in Tyler as well and my lease is set to expire. I would wait until some of the production numbers from the Utica come out in our area. Even if they are bad and I don't believe that will be the case, it should note effect that amount as it is low for just the Marcellus. Good luck
Permalink Reply by Zack Jameson on September 6, 2014 at 2:27pm

I received my latest royalty checks from both CNX and Noble. The totals are nearly the same as last month. Hopefully, the amounts will increase if the price of gas increases with the onslaught of colder weather.

Permalink Reply by Jeffrey Beunier on December 31, 2014 at 12:43pm

what month was it for?  You're probably aware that Oil prices are down 50% since this summer, and gas prices have dropped about 30% in the last few weeks.  SO you got double whammied - depletion/decline curve, and price impact. 

Permalink Reply by Zack Jameson on December 31, 2014 at 3:44pm

My land has made me a millionaire. I have spent very little of it. I feel very fortunate with what I have.

Permalink Reply by rmc on January 1, 2015 at 2:30am
Congratulations Zack who would have ever thought that this ole hillsides would be worth this much money?
Permalink Reply by Nancy LeNau on January 1, 2015 at 3:55pm

Congratulations, Zack !    So Happy for you !  Wishing you the very Best in 2015.

Permalink Reply by Jeffrey Beunier on January 1, 2015 at 4:15pm

That's awesome Zach - invest it wisely and it will provide dividends long after the royalty checks end.

Permalink Reply by Zack Jameson on January 7, 2015 at 12:11pm

Just got my recent royalty checks. I get one from CNX and the other from Noble. No wonder the amounts are down, CNX sold their gas for $1.67 per MMBTU.

Permalink Reply by Terrance Livingston on January 7, 2015 at 3:02pm

I hope they drill a bunch more laterals in your unit Zack so I can tell my friends that I know a MULTI millionaire! Excellent post everyone....

Permalink Reply by Joseph-Ohio on January 8, 2015 at 1:12am
Decline.

I'm thinking it's mostly 'Asset Management' and 'Market Conditioning' kicking in.

If they have no one or not enough buyers to sell it to why extract it ?

Need to build out more infrastructure (including Keystone) and develop a larger marketplace if you ask me.

Been saying it for awhile now.

Politicos need to get on board with it and stop obstructionist behaviors.

Zack is fortunate and I wish him more of the same.

Best of luck to him along with all of the rest of us.
Permalink Reply by Jan on January 8, 2015 at 8:14am

Decline curve revealed by growing Utica shale production data

In the world of shale gas in Ohio, the top-producing wells aren’t king of the hill for long.

Take the Tippens 6HS well, for example.

Located in Monroe County in southeastern Ohio, it produced more natural gas in the first quarter of 2014 than any other Utica Shale well in the state — some 1.117 billion cubic feet of the resource in 80 days, according to Ohio Department of Natural Resources records. That’s enough natural gas to fuel 12,000 houses for a year.

But the well that gushed 13,972 thousand cubic feet of natural gas per day in the first three months of 2014 saw daily production drop 41 percent in the second quarter to 8,180 thousand cubic feet per day and another 26 percent in the third quarter to 6,015 thousand cubic feet per day.

By autumn, the Tippens well was producing less than half the natural gas that it had during its peak output and slipped from No. 1 to No. 72. It went from being a stellar Ohio well to a good-producing well.

Similar drops are showing up in nearly all of Ohio’s horizontally drilled natural gas wells.

Read more here:  http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/declin...

Permalink Reply by Joseph-Ohio on January 8, 2015 at 9:35am

Wondering if any of the 'Production Decline' is due to the Producer 'Throttling / Choking' the well back ?

Any ideas on that ?

Thanks.

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