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Permalink Reply by Gatorguy on June 28, 2008 at 13:49

Are you figures accurate? If you owned 22 acres about how much in royalties could one expect per year? Thanks.

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Permalink Reply by Les Bamburg on June 28, 2008 at 16:33

Gatorguy, for this example I will assume the section (640 acres) is fully developed on 60 acre spacing so there will be 10 producing wells. If the average rate per well is 0.5 million cubic feet of gas per day (MMcfd) the section will be producing 5 MMcfd. At an average gas price of $10 per thousand cubic feet and a 25% royalty the total royalty paid for the 640 acres is $12,500 per day. The 22 acres would receive about $156,836 per year if my math is right.

Permalink Reply by Gatorguy on June 29, 2008 at 3:22

Les B, thanks for the info. Your figures are about what I came up with also.

Permalink Reply by Keith Mauck (Site Publisher) on June 28, 2008 at 13:26

Great find...enjoyed it

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