Royalty $ per acre

I know it varies greatly, but Anyone already receiving checks have any insight on per acre per % royalty #s? Leased with 20 %.



Thanks!

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Permalink Reply by John on August 5, 2014 at 5:20am

mike- This is one of my main questions. I actually received my first royalty check recently. Nowhere on it does it have # of days production. Isnt the first royalty check supposed to be for 3 months production? On the stub there are a bunch of lines with different production #'s (all of them different). is each line a days worth of production?

Permalink Reply by Mike h on August 5, 2014 at 5:35am

John,

You are probably seeing 3 different numbers. One represents natural gas, another represents natural gas liquids and the 3rd represents Oil. There should be a key on your royalty statement.

Permalink Reply by John on August 5, 2014 at 5:46am

there are indeed 3 different numbers and a key at bottom. I guess I was not clear in my question. I am trying to figure out How many days of production my first check is for. Each line has the 3 different numbers you are describing and they are all different volumes. There are 28 lines total. Does that mean I got paid for 28 days worth of production? Each line has a different number under "prod date". the numbers are either 314, 414. or 514. I am assuming this means march, arpil ,may but could be completely off. If it is in fact for 3 months, would it be normal to only have 19 days of production? Excuse my ignorance on these things but just trying to learn as I go along.

THANKS

Permalink Reply by John on August 5, 2014 at 5:47am

I mean paid for 28 days of production not 19

Permalink Reply by Mike h on August 5, 2014 at 7:21am

The 314, 414 and 514 are March 2014, April 2014 and May 2014. I don't have a statement in front of me but I'm pretty sure they don't show days of production. What they are showing are sales (along with the sales price). I think you can get more detailed reporting from ODNR.

Are you in multiple units? You should show sales for each type (NG, NGL and Oil - assuming the well(s) are producing each type) for each unit that you have acreage in.

Here is a link to a CHK website page that might help you.

http://www.chk.com/Owners/Pages/CheckStub.aspx

Mike

Permalink Reply by John on August 5, 2014 at 7:32am

Thanks for info. In two units and both units have same thing with different lines etc. There is def no # of days production on the stub. So is there no way in finding out days in production? I guess what I am trying to figure out is if  my first check I just got (3 months worth) going to be 3 times next months check (assuming no decline same production etc). I know a ton of variables just trying to get a better understanding of how to gauge what to expect from first check.  Am I  wrong that each line is a day of production? In other words if it shows 19 lines does that mean 19 sales, 19 days of production or both?

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on August 6, 2014 at 6:04am

John,

    email me at mrrxtech_yah@yahoo.com  You are more than likely paying CHK to take your NGLs.

Ron Hale

Permalink Reply by Walter Kurtz on August 5, 2014 at 6:33am
Hilcorp is aggressively pursuing me to change my lease from 640 to 1280 acres in the unit. What are the benefits for me to do this? What are the risks? What should I get for compensation for opening up the lease?

Thanks
Permalink Reply by John on August 5, 2014 at 6:36am

Walter- I have no idea or experience in this. However, I know it has been discussed at length on this site. Seems to have really been the hot thing the last year or so. No ideas of pros/cons but I know there are both and like anything else with this stuff you do your due diligence before signing/agreeing to ANYTHING. I would recommended going back through old threads and seeing what you can find on the subject.

GOOD LUCK

Permalink Reply by Jason on August 5, 2014 at 6:42am
Walter, when is your lease set to expire?
By doubling the unit size they can hold by production more acreage with one well.
It's in the O and G companies interest to do it. It may ( maybe not ) be in your's as well.
Permalink Reply by Walter Kurtz on August 5, 2014 at 8:15am
October 2015. I get that, but that doesn't help me. If they can put 6wells instead of three in a bigger unit does that get me more royalties or am I just sharing more at half the price?
Permalink Reply by Dexter Green on August 5, 2014 at 8:26am

More wells means more production and more spreading of risk.  Of course it cuts in half your proportionate share of the unit, but I'd rather half the interest in double the wells.

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