They want to buy my oil and gas rights in tusc. County Ohio. And pay me one lump for it all. Should I do it because I don’t there now ?

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price per acre?
doing it or not is dependent on your personal circumstances
i'd wait. unless i needef the $$$ now

I never suggest anyone to sell, but if you have to, Call AMCO at 681.209.8964 or fill out their site form. www.amcooilgas.com 

They got my cousin 3 times more per net acre from other companies making him offers. 

James, I've always been told "Never Sell" even by a few Landman. Yes you will get up front money if you sell but you will be giving up royalties for the rest of your life, and that is where the real money is. Someone else will be cashing those checks. They are beginning to form Units and Drill in Tusc County especially in the Southeast. That is why you may be getting more calls to sell. We have been waiting for this for a long time don't give in now. In what Township are you located?

James, just to let you know that the first 6 months of our royalty payments more than covered any offers we received to sell our oil & gas rights. That was over 3 years ago. Hope this information helps 

Jett,

It is good hearing from someone that has acreage in production - thanks for sharing.  Have you seen numbers drop off significantly after the first 6-10 months?  Given your experience, would you speculate on how much a landowner would receive in royalties per month if they have only 1 acre in a unit and have a 17% no deduction lease.  I am trying to ask this question in a way that doesn't make you uncomfortable, but if you don't feel comfortable answering I understand.  

Thanks,

Dave Cain

Disclaimer ahead: everyone’s experience is different 

Just giving a general guess, nothing to count on - first few months 2000/month/acre. after that it does seem to drop but still something nice every month for years. Can Shut in and then started up again 

Jett,

Thank you for sharing.  I really appreciate hearing from a person that has firsthand information like yourself. I got to tell you that number sounds really good. I will be ecstatic if I see similar results if/when that day ever comes for me. You definitely made my day!

Regards,

Dave Cain

Just want to clarify, it does drop quite a bit after those first several months but it continues to be a nice addition to my income

Jett,  

Based on things I have heard and read it sounds like the average royalty for year 2 would be about half of the royalty received in year 1.  Then year 3 is about half of what occurs in year 2.  After 4-5 years it sounds like the royalty tapers off to about 10-15% of the original amount for years 5 through 10.  After that, it is really unknown since no wells have been producing more than the 10-12 year mark in the Utica.  I know this a pretty speculative, but does this sound like it is in the ball park of what you are seeing?  Again, I just want to thank you for being so open to discussing what you have experienced so far.  I hope that when I am in your position and am part of a producing unit that I can share my experience with others that haven't been drilled and are trying to evaluate the worth of what may be in their future.  

I do have experience with the leasing process, and I just completed a lease in SE Guernsey for $4K per acre and 17% no deduction royalty on a 5 year lease.  Ascent is the operator and they appear to be selectively leasing acreage that they plan to drill in the near future.  At least that is my interpretation of what is occurring with them.  

Regards,

Dave Cain

Ours tapered a little faster than that but it’s still a nice amount every month. With multiple acres it adds up. Sometimes it will bounce up a bit. A very few months we didn’t receive any. We have taken the attitude that this is not a part of our income but is extra. They royalty has been a positive for us for sure. 

David where’s your acreage located? I own producing acreage across multiple counties in Ohio. And production drops precipitously during the first year and continues to decline sharply over the first several years. Also whether your lease permits deductions has a large influence in your revenue, as commodity prices obviously do as well. For example, net lease in today’s gas price environment isn’t going to produce anything near what it did last year

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