Replies to This Discussion

Permalink Reply by hunter4440 on July 3, 2012 at 10:29am

Yes, I have received a few with the best being $4,350 per acre. Depending on a person's reasoning, it may be worth a look. If you would like the name and contact information, you can call me at 330-904-3026.

Permalink Reply by Billy Park Whyde on July 3, 2012 at 3:12pm

That amount would be very hard to even consider as a lease bonus could even pay more.

Permalink Reply by 0i7okn54zwbdo on July 5, 2012 at 3:20am

That doesn't make a ton of sense.  A lease bonus payment gives the Lessee a much bigger stake.  If you sign a lease and negotiate for an 18% royalty it means you're accepting payment for signing over an 82% ORRI.  If you're selling half of your interest you're only giving away a 9% ORRI.  Signing a lease for say $5,000/ac works out to ~$61/ac per point.  For CHK to buy a working interest in a well they'll spend around $67,500 per acre (that's drilling cost along with LOE, assuming a 160 acre unit and $5,000/ac bonus payment).  That works out to just about $825/ac/point.  If you're selling half of an old lease (12.5%) it'll cost just over $5,000 to get into that well at retail price.  That's what CHK would charge a working interest holder.  A royalty buyer needs to come in a bit lower in order to hedge against the risk of holding land that won't be drilled.  The numbers that are quoted on here seem pretty reasonable when you consider all of the factors.  

Permalink Reply by Robert P on July 3, 2012 at 3:15pm

Yes very true.... I was just curious to see what others have received...I have no plans of giving up my rights.....

Permalink Reply by Utica Shale on July 3, 2012 at 3:30pm

Robert,

 Did you chuckle at that offer?  :-)

 I was offered $5,000/acre and I was already paid my Signing Bonus.

Permalink Reply by Robert P on July 3, 2012 at 3:37pm

Yes I did! Especially when I believe they have started marking the road for improvement for the well pad that would be NNW of me less than mile away!!

Permalink Reply by Utica Shale on July 3, 2012 at 3:44pm

Robert,

 You could get $5,000 per acre in Royalties in just the first year.

 

Permalink Reply by Robert P on July 3, 2012 at 3:47pm

5000 an acre per year would be nice!!

Permalink Reply by Utica Shale on July 3, 2012 at 4:19pm

Robert,

 Only the FIRST year then down from there depending on choke.

 

Permalink Reply by hopeforoil on July 3, 2012 at 5:17pm

I have also been approached to sell my royalty. I didn't "chuckle at the offer". I don't doubt you could make up the 5000/acre in one year but on the other side of coin you may get all of nothing. I was raised to believe that "pigs get fed, hogs get slaughtered". Thats why we are seriously considering selling some of our royalty to hedge our bets. Some tough decisions ahead!

Permalink Reply by take the money and run on July 4, 2012 at 2:24am

Could you please give me the name of the company? I like you, am also considering selling. Thanks in advance.

Permalink Reply by hunter4440 on July 4, 2012 at 2:42am

There is a law firm in Canfield which is representing a lot of mineral owners which have elected to sell. The name is Johnson and Johnson, The contact there is Molly. She advised me that an even larger offer is expected. Columbiana and Carroll are the two hot spots. 

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