VERY INTERESTING DISCUSSION...about 4 minutes long...Take a listen @

http://www.platts.com/Natural%20Gas/Resources/

Slide down webpage to: WHAT'S NEW ON Platts.com and click on:

North American Shale gas players energy spotlight "podcast"

"2 years to pay for a well that potentially will produce for 50 years"

VERY, VERY INTERESTING!

DrWAVeSport 6/27/2008 p.m.

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Are you figures accurate? If you owned 22 acres about how much in royalties could one expect per year? Thanks.
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.
Les B, thanks for the info. Your figures are about what I came up with also.
Great find...enjoyed it

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