We have been approached by Chesapeake to place a platform and drilling rig on our farm. We have 160 acres. What is the CURRENT rate being paid for the one time land usage? What is the current yearly royalties being paid?
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Also,
" ... Total Royalty of $363/acre/month ..."
assumed a new style lease at 20% GROSS !
If you have a old style lease at 12.5% NET
it would yield only $183/acre/month or LESS !
DBD,
Per ODNR,
The Mangun Well had ...
322,435,000 cubic feet gas / 206 days = 1,565,000 cubic feet per day.
or 1.5 million cubic feet per day.
PK,
The numbers that CHPK released last fall were short-term PEAK Production Gas flow rates. Today we are seeing the real long-term Continuous Daily Production gas flow rate. It is theorized that a slower flowing well produces more total product over its lifetime than a well that is not choked down and is allowed to flow unrestricted. Once a well drops below its dew point and the gas condenses out, it is much more difficult to get the wet product out of the well.
Marcus,
"...this data so far shows that the liquids bonanza that we were promised was inaccurate..."
ODNR stated the Natural Gas Liquids , NGL's, are reported in the GAS column with the Methane and not the Oil column. So, how do know what the % NGL's was? I never expected much oil from the Buell well.
Larry,
Good to see that YOUR calculator is working slightly better today, LOL!
You stated previously that you would share the formulas.
But I do not see any of your computations that produced your result of $28.51 Royalties/acre/day for the Carroll County wells.
Mangun well example ( not counting NGL's, just like you did ) ...
12,334 bl oil x $104/bl / 216 acres / 206 days = $28.83 Sales/acre/day
322,435 MCF x $2.10/MCF / 216 acres / 206 days = $15.22 Sales/acre/day
This well only had $44 Gross Sales/acre/day (not counting NGLs just like you did)
at 12.5% NET Royalties that is only $5.50 Royalties/acre/day.
How are you computing $28.51 Royalties/acre/day ?
I use the Mangun well because it has been production for over 6 months.
The other Carrol County wells have only been in production for 4 months or less.
You had stated in a previous message that Royalties were proven to be $2,660/acre/month.
That equates to $87.21/acre/day.
But today you say, "UH-OH", it is only $28.51/acre/day. Yikes!
And I still cannot even justify that result.
What happened to your "facts" ???
PK,
RE: Mangun well royalties calculation ...
25% of the Royalties came from Dry Gas & very easy to estimate.
25% of the Royalties came from Wet Gas & not too difficult to estimate.
50% of the Royalties came from Oil & very easy to estimate.
Even if the % NGL's were double or half my estimated %,
it still does not affect the final answer that much.
I will stick with my $350 - $400/acre/month estimate until proven wrong.
Stating that you cannot perform the math does not prove my math wrong.
And the result is certainly NOT $2,260/acre/month as Larry has originally stated.
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