Replies to This Discussion

Permalink Reply by Utica Shale on September 13, 2013 at 3:20am

Lisa,

"... Does anyone have any information on royalties or the production of the well?  ..."

The short answer... no.

The long answer ...

Well # 34-029-21723-0000 ?

It went to "Production" status mid April 2013. That does not mean that a Gathering Pipe was actually connected to the well or not. Personally, I do think this well is now CONNECTED to the Gathering Pipe in that area. Only the landowners in the Production Unit actually receiving Royalty Checks can give you any FACTS about the $ / acre per month for that specific well. Actual royalty payment reports have not been very forth coming on this website. Now that the Kensington Processing facility is OPEN and gas is flowing we may hear from landowners actually receiving royalty checks. I do hope the landowners receiving Royalty Checks will share their $ / acre per month so that we can see the actual decline in Production over time.

IP ...

2,365 MCF Gas

323 Barrels Oil

Permalink Reply by Lisa Casto Blythe on September 13, 2013 at 4:55am

Thanks you have the right well.  Thanks for your input.  We will be receiving royalties from this well Chesapeake required us to do some additional paperwork at the last minute.  We are jumping through their hoops.

Permalink Reply by Utica Shale on September 13, 2013 at 7:12am

Lisa,

Given the IP of ...

2,365 MCF

323 Barrels Oil 

I assume that is for 24 hours?

Then very, very, very roughly ...

$2.50/mcf x 2,365 mcf = $6,000 Gas

$100/bbl x 323 bbls = $32,000 Oil

===========================

$38,000 Sales per day for this Lateral 

If 200 acre PU then $190/acre/day = $38,000 / 200

If 15% Gross Royalty then ...

$30 per each of your acres in PU per day of Production

Adjust the numbers, as needed, for this specific  well ...

Permalink Reply by Lisa Casto Blythe on September 13, 2013 at 7:43am

What does PU mean?

Permalink Reply by Utica Shale on September 13, 2013 at 8:43am

Lisa,

"... What does PU mean? ..."

PU = Production Unit

The legally described section of land that gets paid the Royalties.

YOU get a check based upon YOUR % of acreage within the PU.

The PU may contain one or more laterals.

  In the above calculation I assumed a 200 acre sized PU around one Lateral. 200 acres and one Lateral may or may not be accurate for your PU. I then computed the Royalty $ per acre per day. That way you can then simply multiply by number of acres you physically own within the borders of that PU times $30 (my example) to get Daily Royalties.

 

Permalink Reply by Lisa Casto Blythe on September 13, 2013 at 10:28am

I had some paper work the PU is I believe 147.6 for this well

Permalink Reply by Utica Shale on September 14, 2013 at 1:25am

Lisa,

  Make sure that 147.6 Acres is the legally filed "Production Unit" and not the ( minimum / estimated ) ODNR Unit Acre Drawing. They are not always the same thing. The ODNR UAD is simply the smallest PU allowed by law per the ODNR setback laws for any single Lateral. The final PU, for Royalty Payments, may be larger and may include more than one Lateral. Maybe, my 200 acre PU estimated size was very reasonable?

  If this well produces like the Initial Production ( IP ), that I posted in a previous message, then the landowners should be very happy with the royalty payments, for at least the first year. I know I would be !

Permalink Reply by Kathleen on September 14, 2013 at 3:21pm

Hi Lisa,

Take a quick trip to the court house and pull up book 1914 page 904. This will be on the computers in the basement. Year 2012
That will show you the full "declaration of pooled unit" for the Henderson south unit.
What you see there will look different then the ODNR well info even if its the same acreage. I'm betting this unit is bigger then what the ODNR is showing.
You will see every mineral owner in the unit listed. If its like any other well I've looked up,there you will see a ton more owners then the ODNR is showing. They only have to show the well leg, not the pooled unit.
If you choose not to go to the courthouse, once you are in the unit CHK will provide you with these papers, but it could take a while.
On the county online records it clearly shows you are apart of this well, but you are not pooled in yet. Weird. I guess that's what you are working on.
I promise you this does not take long at the courthouse and its fun. 15 minutes of your time and that could include parking your car and walking in.
Have fun!