Royalty payments

I found a website that calculates royalty payments. I was amazed with the results that I got. Based on 25% royalty, wellhead cost of $9.50, 16.8mmcfe natural gas produced a day in a 640 acre unit would yeild approx. $40,000 per year in royalty for 2 acres. I based the amount of production per day on the results of the Bossier City well. I live in Desoto Parish and spoke with a landman he told me that the figures were possible. But I see others with figures are much less. Am I missing something?

Views: 21

▶ Reply to This

Replies to This Discussion

Permalink Reply by John Cash on August 3, 2008 at 15:47
But...as long as you are dreaming, go ahead and figure it with the ultimate 80 acre spacing. That's 8 times the number that you came up with. Question is will we live long enough to see it?

John
Permalink Reply by Ms. C Word on August 3, 2008 at 15:53
Here's the website geology.com. Click on royalty estimator. Try it for yourself.

RSS

Support GoHaynesvilleShale.com

Top Content 

1 Leasing

Leasing
2 Texas Smackover Lithium Play

Texas Smackover Lithium Play
3 Haynesville gas production faces summer headwinds as activity hits 3-year low

Haynesville gas production faces summer headwinds as activity hits 3-year low

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service