Replies to This Discussion

Permalink Reply by Robin Hood on March 26, 2012 at 5:31am

Scan this website. There is a very detailed thread about royalties. $71per acre per month for gas is the short answer. But then if it's gas, wet gas, oil combinations it all changes considerably.

Permalink Reply by Utica Shale on March 26, 2012 at 6:06am

If you assume $70 per acre per month then also assume that for only the first three years.

Then assume $35 per acre per month for the next three years.

Then assume $20 per acre per month for the last four years.

That averages to only $40 per acre per month over the 10 year life.

So, $5,000 (+/-) per acre over the lifetime of the well  ???

 

Production will drop over the lifetime of the well.

How fast, is only a guess-timate until a  horiz well actually produces for 10 years.

 

Maybe, the well can be re-stimulated after 10 years ?

 

Also, I think initial royalties can vary from well-to-well from $140/acre/day to $35/acre/day.

Dry Gas?

Wet Gas?

Condensate?

Oil?

 

This is all for GROSS Royalties.

If your lease is for NET Royalties then expect less.

 

 

 

 

Permalink Reply by Robert P on March 26, 2012 at 6:47am

Eastern Columbiana county....isnt that pretty much a "dry gas zone" being so close to PA....since they are supposedly leaving there because its just gas there?

Permalink Reply by Utica Shale on March 26, 2012 at 7:20am

Robertt,

 The South-East corner of Columbiana County may be DRY GAS (or may not). Until Chesapeake actually completes several of their many well sites that are under construction in Eastern Columbiana County we/they do not know for sure. Yes, the Thompson well in Beaver County, PA is Dry Gas. The Utica in Ohio needs to be drilled and fracked before CHPK knows for sure what is underground.

 

 

Permalink Reply by Robin Hood on March 26, 2012 at 7:57am

Do you know for sure that the Thompson well is ONLY dry gas? I thought I had read that this information was based on a news release by Chesapeake end of Sept.2011. Chesapeake was at the time under no obligation to reveal the full results. 

Permalink Reply by Dan on March 26, 2012 at 3:28pm

Utica,

Don't you think new technologies will be developed over the years that will increase production numbers?

Permalink Reply by Utica Shale on March 27, 2012 at 1:43am

Dan,

 

I wrote ...

 

" ... Maybe, the well can be re-stimulated after 10 years ? ..."

 

 

 

Permalink Reply by Dan on March 27, 2012 at 11:20am

Thanks Utica,

Missed that.  I would hope and guess the big players have hefty R&D budgets and once a good hole produces new technologies will keep them coming back for 30 to 50 years.

Permalink Reply by 0i7okn54zwbdo on April 19, 2012 at 4:54pm

These shale wells tend to have much shorter lives than advertised.  Average Barnett well is 7.5 years.  The mode is 4.