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Permalink Reply by David Allen Lilly on June 3, 2015 at 1:04am

Scott,

Not to re-open old wounds or ignite an old battle but I can explain to you pretty close to how it would play out although I cannot give you a precise dollar amount because I don't have nearly enough information about your situation to do so.

No matter who you contact or who contacts you in regards to a mineral rights sale, that person or entity employing that person is going to require a copy of your lease which they will study for terms such as royalty percentage and gross/net, among others.

They will then take a long look at production figures of anything around you that has been drilled already as well as what infrastructure is in place that would service the unit you are in. These are not the only items they will thoroughly parse but they are among the most important to them.

Whatever the stipulations of your lease and the current price of the production and expected future pricing your lease will have a dollar figure attached to it that they expect will be reasonable although very conservative for the value of your lease over its' lifetime.

The next step for them is to offer you a generous (sarcasm) offer which will equate to about 10% of that overall value of your lease.

IF you are lucky and in a very good spot you may, MAY get up to 25%, but I wouldn't hold my breath if I were you because at 12.5% I am thinking you probably have a net lease.

Additionally, the purchase of your lease will almost certainly be a surface to core lease which means your buyer will become the surface to core owner, so any other formations that are produced will go 100% to the purchaser of your lease. It is likely that we sit on other formations which will be produced from the same pads as the technology and the understanding of what is down there increases.

If you get my drift I am trying hard to convince you to NOT sell your minerals, no matter what the folks who have an interest in buying your minerals will tell you it is 99.9999% of the time a terrible idea, equating the giving away of your money to wealthy interests.

I wish you the best of luck.

I have 30 acres in Millwood township, Guernsey county plus 5 city lots in Quaker City and would never except under the absolute most horrendous circumstances sell any portion of it.

Few of us lay people truly understand the potential worth of our ownership.

I can virtually guarantee you selling is a certain mistake while keeping your royalties is a guaranteed win.

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Permalink Reply by jonathan M. on June 3, 2015 at 3:00am

I just got my first check for the andy yoder wells in Oxford township guernsey county. Not far from you david. I have 3.125 acres leased at 20% in the units and my first check was $185.00. That's not per well not per acre that was the entire check. Disappointing to say the least. This is the total for 3 horizontal wells and they produced almost the entire month. This boils down to $60/acre for the month or $20/acre/well.

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Permalink Reply by David Allen Lilly on June 3, 2015 at 4:16am

Something is terribly wrong. I would not cash it, instead I would hire a law firm to audit the amount you were paid against production and the terms of your lease.

Do we know each other ?????

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Permalink Reply by jonathan M. on June 3, 2015 at 5:01am

Don't believe we do. According to Jan the wells were only online partial month. So hopefully the royalties increase. I just don't see them getting too much higher. I'm also in the Milliken wells in sw Harrison. The royalties from that we'll have been less than impressive to say the least. Last month (been online about 6 months I believe) my check came out to around $36 per acre. That's the lowest it's been but it's never been more than $150/acre. This is also for 3 wells.

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Permalink Reply by Jan on June 3, 2015 at 4:18am

Jonathan - I'm not sure if you are in Andy Yoder A unit or Andy Yoder D unit, but the check you just got was probably for March.  Here are the number of days of operation for all of the the Andy Yoder wells:  In "A"  - 1 H = 15; 3H = 12; 5H = 7.  In "D" - 2H = 6; 4H = 13; 6H = 10. As you can see, both units had just been put inline.

I know it's disappointing when you get that first check, but hang in there....it get's a lot better!

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Permalink Reply by jonathan M. on June 3, 2015 at 4:59am

Thanks! I'm in andy yoder d. That makes me feel better but even if the check was tripled still not what I was hoping for. Better than nothing though.

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Permalink Reply by Scott Brownfield on June 3, 2015 at 4:35am

Thanks everyone, Im just not educated enough on this Hush industry

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