Replies to This Discussion

Permalink Reply by Utica Shale on April 2, 2012 at 4:15am

Gerald,

"...  What is the CURRENT rate being paid for the one time land usage? ..."

 

 Ther is no such thing. Landowners with old leases get next to nothing. While landowners with new leases get $30,000 for a 7 acre pad and $4,000 for each additional acre used, PLUS ROW, forrestry, water, access road, compressor station, etc compensation. Every deal has been unique because of the wide variey of lease language over the past 20 years. What does your lease say you are entitled to?

 

" ... What is the current yearly royalties being paid? ..."

 Depends upon on your specified lease %, Gross vs Net, Actual Well Production, Number of Wells in the PU, Production Unit Size, your actual acreage in the PU, and which YEAR of production since Royalties drop like a rock in the first year.

 

 Will your well produce 1,000,000 Cubic feet per day?

 

 If yes and you get 20% Gross royalties?

 Then about $60/acre/month for 1st month and $12/month/acre for 13th month (+/-).

 

 If yes and you get 10% Net royalties?

 Then about $30/acre/month for 1st month and $6/month/acre for 13th month (+/-).

 

 

 

Permalink Reply by mary ellen on April 2, 2012 at 4:23am

Is that including NGL royalties.  Carroll County is the hotspot, and I would think that the royalties would be much more.

Permalink Reply by Utica Shale on April 2, 2012 at 4:50am

Mary,

 Royalties are based on 100% Dry Gas at 1,000,000 Cubic Feet per day.

 I cannot make any assumption reagrding Natural Gas Liquids (NGL's), Condensate or Oil.

 Yes, Royaties will be higher for those items.

 Do you have accurate monthly production #'s for NGL, Condensate ot Oil, yet ???

 That ODNR info will not be available until later, today.

 

 If you have all 640 acres in the PU then $38,400 Royalties for 1st month just for Nat Gas ???

 

Permalink Reply by Paul Martinelli on April 2, 2012 at 4:26am

you will get paid plenty from the royalties either way.

 

But is under an old lease....they basically have the right to come in and do just about anything they want.......10 acres for a drilling pad...5 acres for retention ponds, 2 acres for noisy  24x7 compressor station....roads....pipelines...................

 

 

Permalink Reply by mary ellen on April 2, 2012 at 4:28am

Are those figures above for NGL royalties?  Carroll county is the hotspot, and I would think that those royalties would be much more. I guess we will know more when Chesapeake releases their production numbers today for their Carroll County wells. 

Permalink Reply by Larry on April 2, 2012 at 4:56am

I would say utica shale you need a new calculator are figures come inmuch higher. If you take an average of all wells producing records for everything they are pulling out. It comes out two 2660.00 an acre a month. And so far know drop off for three years and thats fact. If you need any help please contact me

Permalink Reply by Utica Shale on April 2, 2012 at 6:01am

Larry,

"...  If you take an average of all wells producing records ..."

 You have access to that information? OK, then please provide the names of ALL of these wells that you averaged together and give us the monthly production numbers for each well including quantities of Methane, NGLs, Condensate and Oil and the Well Head Price for each component.

 

 I gave a simple basline example of 1,000,000 Cubic feet of Dry Gas per day.

 $61/acre/month = 1,000,000 cubic per day x 30.5 days / 200 acres x $0.002 per cf x 20% Gross

 I just checked my calculator and it is working just fine.

 

 If your particular well is double that Nat Gas rate then you get double the royalties.

 If your particular well is triple that Nat Gas rate then you get triple the royalties.

 If your particular well has 10 x's that Nat Gas rate then you get 10x's the royalties.

 If your well has NGLs then add NGL royalties.

 If your well has Condensate then add Condenate Royaties.

 If your well has Oil then add Condensate Royaties.

 I gave baseline example for the individual landowner to extrapolate from.

 Got it?

 

"... And so far know drop off for three years and thats fact ..."

Please name these Horizontal Utica Wells that have been in production in Carroll County for three years.

 

 

 

 

Permalink Reply by Larry on April 2, 2012 at 6:10am

Odnr reports
and check out eagle ford texas
hartville
and i was not stating all will do this well but the info is out there to support it at present. And remember they all have a shut off valve. But i believe he was looking for how much he could make. Not a in generalization. And sorry did not mean to offend you. I was playing about the calculator

Permalink Reply by Utica Shale on April 2, 2012 at 6:49am

Larry,

  " ... Odnr reports ..."

 WHERE? 

 There are no production result for any Utica wells for Carrol County on ODNR.

 Please provide your link to Monthly Production Results from Carroll County.

 There aren't any yet.

 Hopefully, will be posted by tomorrow for first time.

 

 No we do not live in Eagle Ford Texas or Hartville.

 The ratio of Dry Gas to NGL's to Condensate to Oil can change royalties by a factor of 10:1.

 Actual flow rates can change the royalties by a factor 10:1.

 What if CHPK only puts only one well in a 1,280 PU instead of 6 - 8 wells????

 There are way too many variables for anyone to predict the average well in Carrol County will yield on average $2,660 per acre per month over first three years.

 

 I will be conservative and I will wait until ODNR actually releases real monthly production data for the Utica wells in Carroll County before I estimate oil components other than Dry Methane.

  

Permalink Reply by Utica Shale on April 2, 2012 at 7:13am

Larry,

 

 The  ODNR report for the Mangun Well in Carroll County has just been released!

 It AVERAGED 1,500,000 cubic feet of gas per day for 206 operating days.

 No breakdown of the individual gas components, yet.

 Please explain how that computes to anything near $2,660 per acre per month?

 

Permalink Reply by Larry on April 2, 2012 at 7:35am

Patience wait for all of it. And now we have robbed this guys Paige not very nice of us when i get off work i will try to post results and formulas thanks

Permalink Reply by Utica Shale on April 2, 2012 at 8:07am

Larry,

 Baseline well of 1,000,00 cubic feet per day of dry gas = $60/acre/month

 Mangun Well flow was 1.5 Million cubic feet per day, so $90/acre/month

 I estimate 20% NGL's at 5 times the value of Dry Gas, so $180/acre/day

 Add in Oil at $183/acre/month therefore: Total Royalty of $363/acre/month !

 

 

 

• ‹ Previous
• 1
• 2
• 3
• 4
• Next ›
• Page