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?

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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.

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