Where's all the people that advised everyone the moneys in the royalties not the bounus?

Is there any chance there will be a turn around and the land owners will actually get what they were promised? Riches in the royalties. I remember it well. Back yard lawyers. "Don't give the lawyer any percentage give them $per acre" Well at the last minute I had a choice and went with giving the lawyer %1 of the royalties. He hasn't got nothing yet and, the $350 per acre is in my pocket. Well it was till I spent it all down to the level I was at before I was rich. (I wrote about that before how hard it is for anyone to hold onto a wind fall)  At the present after 3 yrs I think it was the right choice and, when the gas co. starts cheating me my lawyer has an interest with me and many others in our group to try to fight for us. That 1% of a group will line his pockets pretty good.

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Permalink Reply by wyalusing jim on December 28, 2015 at 11:22am

"To put the question another way: Who thinks their royalties will exceed their signing bonus PER ACRE anytime soon for the acres they have signed?"

in bradford county pa, with only a single well drilled, my royalties per acre exceeded my bonus per acre in 14 months of production. Chesapeake is the producer, and in over 4 years of production I have received multiples of the bonus amount for which I signed.

my unit should eventually contain approximately 28 to30 wells. you do the math....

if you have gas, your experience should be similar to mine, if not, go for the bonus.

wj

Permalink Reply by Joe on December 29, 2015 at 8:37am

Can you put a time line on how all that came down because there are people on here saying they have received little from chesapeake this year?

Permalink Reply by Thomas Lilli on December 26, 2015 at 10:13pm
Call me pessimist but I think the Middle East is not at all stable and prices in the next year will become very volatile. Not good for our economy but I believe will influence the price of oil and gas.
Permalink Reply by DESJR on December 29, 2015 at 3:06am

"in bradford county pa, with only a single well drilled, my royalties per acre exceeded my bonus per acre in 14 months of production. Chesapeake is the producer, and in over 4 years of production I have received multiples of the bonus amount for which I signed.

my unit should eventually contain approximately 28 to30 wells. you do the math....

if you have gas, your experience should be similar to mine, if not, go for the bonus.

That statement is only relevant to the amount of bonus money one received. If you were one of the unlucky ones who received very low upfront money and signed early when they were trying to steal your lease from 25 to 500 an acre you certainly would exceed bonus pretty fast. On the other hand if you were of the more fortunate variety who got a very nice sign on bonus (5000 and up) this would not happen as fast, if at all in the current conditions.

Permalink Reply by Joseph-Ohio on December 29, 2015 at 3:32am

Personally I'm not thinking of any 'upfront money' associated with any leases I'm reading of as a 'sign on bonus' / 'signing bonus' / any kind of 'bonus' at all anymore.

To me it's better defined as an 'Upfront Delay Rental' payment.

I think it's healthier to look at it that way myself.

Another member on these pages defined it that way to me in another and earlier discussion.

That member indicated that they aren't two different things in the context of the modern long horizontal leasehold agreements being used these days.

That's my take anyway.

Permalink Reply by wyalusing jim on December 29, 2015 at 3:45am

"That statement is only relevant to the amount of bonus money one received"

my statement answers the question as posed.

I consider myself fortunate to have good shale, but it was my patience that put me beyond the upper range of bonus figures that you mention. and so no matter what the bonus, it can be surpassed with royalty income in a short period of time. it all depends on whether or not you have good shale.

wj

Permalink Reply by Joseph-Ohio on December 29, 2015 at 4:45am

wj,

Personally, I think all the shale in the Marcellus and the Utica is 'good'.

I'd term your shale 'the easiest shale' myself.

Also they wanted the Natural Gas more so then as opposed to now.

You know what's transpired in the Natural Gas and Oil market since so......no need to visit all that.

Continued good luck to you and best of luck for all of us.

J-O

Permalink Reply by wyalusing jim on December 29, 2015 at 8:42am

joe, no offense intended, but your opinion couldn't be more wrong.

some shale produces enough gas to make the wells economic in depressed pricing environments, and some shale didn't produce enough gas to make a profit in the best pricing environment.

some shale wells produce so much water that the cost of disposal exceeds the value of the gas produced.

some shale is still being drilled in this low price environment, but much is not.

no joe, all shale is not good. some will be drilled, some will not...some will be leased and some will not.

it's all about the economics of your shale.

wj

Permalink Reply by Joseph-Ohio on December 29, 2015 at 10:35am
I don' t think I'm wrong wj.

The economic yardsticks keep morphing.

Also, what's economical today may still be tomorrow but not desireable / have a market and vice-versa.

If the resource exists they'll come get it but only when they want it.

To me very changeable / volatile pending many variables but still 'good'.
Permalink Reply by wyalusing jim on December 29, 2015 at 10:49am

one good example of how that is wrong is, that in new jersey the Marcellus is around 900 feet thick. there will never be any drilling there though because that shale produces no gas. it lacks the carbon content necessary for hydrocarbon production.

to varying degrees that is true throughout the Marcellus, more or less carbon, not deep enough/too deep, too much water, etc.

but you certainly should believe whatever you need to believe. that's your right.

wj

Permalink Reply by Joseph-Ohio on December 29, 2015 at 11:08am
No argument there wj.

You too.

BTW, I'm not really interested in the Marcellus in New Jersey.

However, very interested in the Ohio Utica and what's been said / written about it (which has been pretty good IMHO).

Good luck to all of us.
Permalink Reply by The Hiker on January 1, 2016 at 1:52pm

Call me one of the lucky ones in Ohio; the $5900/acre bonus has been exceeded 1.2X in royalties over the last 12 months.  It's not all bad news.

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