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Permalink Reply by Clinton44 on April 29, 2012 at 4:06am

Take the money, a lot of factors come in to play as to wether or not you wll get thousands per acre.

 number one factor is the current low price of gas....

number two how large is the unit you are in?

number three how much of your acreage is in the unit?

We are in PA 14 acres in a 586 acre unit with three wells currently in production.

 40 plus acres in a 640 acre unit with five wells currently producing.

This months average per acre was around $250.00 The monthly average will increase or decrease proportionaly with the flucuation of the price of gas 

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Permalink Reply by Kathleen on April 29, 2012 at 4:16am

Due to the low cost of gas I think you are doing well. Did you see the decline yet? It does say the volume of gas you received the royalties off of right?. When we lived on a farm with 37 acres in a Clinton well we got about 53 dollars every three months. I was happy to see that 53 dollars but it was never enough for me to really look at the stub and analzy it so I don't remember how they broke it down. Just curious. Thanks.

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Permalink Reply by Clinton44 on April 29, 2012 at 4:38am

Yes production figures are provided with the payments. We have seen the production figures vary some from month to month but not much of a decline as of yet and first wells have been in production since November of 2011

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Permalink Reply by Betty on April 29, 2012 at 5:48am

Is that $250 per acre per well?   Thanks for posting. 

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Permalink Reply by Clinton44 on April 29, 2012 at 6:14am

You are welcome. That is a total for all eight wells in the two different units.

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Permalink Reply by Deci Ruiz on April 29, 2012 at 7:55am

Doesn't sound like a lot. I do hope the price goes up before they drill our wells ( we are in two declared units)
Anyone know how long after thr units are declared do they start drilling?

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Permalink Reply by Clinton44 on April 29, 2012 at 8:59am

How many acres in each unit??

Drilling times vary It was about 14 months from pad construction till we received first royalties.

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Permalink Reply by 2s72s0k9mm8gd on April 29, 2012 at 3:01pm

Thank You so much for sharing this with us , Eric. Would you mind telling us ,  what is your royalty % and is it gross or net? Thanks again.

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Permalink Reply by Clinton44 on April 29, 2012 at 3:11pm

15% net We share proportionally with all in the units for things like gathering pipeline charges levied on the operator by the midstream companies that transport the gas to the point of sale, which are calculated back from the downstream point of sale.

The gathering charges are not unreasonable, afterall without the midstream companies nothing would get to market.  

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Permalink Reply by 2s72s0k9mm8gd on May 3, 2012 at 9:41am

Eric ,

Thank you very much for this info. You give us all a reasonable idea of what to expect someday. Thanks again , it is greatly appreciated!

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Permalink Reply by Deci Ruiz on April 30, 2012 at 1:21am

Thanks Eric
From what I can tell (depending on the company ) they drill 6-8 wells per pad.
But not all at once
Also if they start drilling to the Utica scale who knows.
14 months till the first royalties seems long, We were told 6 months
Thanks again for the info

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Permalink Reply by take the money and run on April 29, 2012 at 9:30am

Eric, Thanks for the info.

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