Replies to This Discussion

Permalink Reply by herefordsnshale on March 22, 2009 at 3:38

I've used this site. The numbers were much higher than I thought. The site has a bit of a disclaimer saying your actual royalties could vary. Experts--do the numbers here look accurate?

• ▶ Reply

Permalink Reply by olddog573 on March 22, 2009 at 4:43

From what I've been looking at, it doesn't take alot of land for good mailbox money to start rolling in assuming a good well is drilled in your section.

• ▶ Reply

Permalink Reply by olddog573 on March 22, 2009 at 6:49

You're correct so as the saying goes don't count your chickens before the eggs hatch but the calculator is fun to play with none the less.

• ▶ Reply

Permalink Reply by gregory richardson on March 22, 2009 at 10:14

In Desoto the Griffith well (starting in January) was measured at somewhere around 23 mmcfd and was choked to 14 mmcfd. There simply aren't that many Haynesville wells producing so far. Most of the "new" wells in Desoto are, I believe, Cotton Valley.


Beyond that, the estimation tool is useless without knowing what the current wellhead price is being paid by your company. This amount is dependent upon lease conditions, the state of the well and it's production (e.g. - how much extra work must be done to prepare the gas for transportation/sale), and whatever sales arrangements your company has made for sale (open market/fixed contracts, and the like). The price the estimation tool is providing is basically the Henry Hub spot price which will be more than what you will be paid. As an example, some of our neighbors received something around $3.75 for a February wellhead price. The Henry Hub average spot price, if memory serves me, was around $4.50 for the same time period.

By the way, your company does have a very good idea (on a daily/weekly basis) of what they are paying. The difficulty is getting them to tell you what it is.

• ▶ Reply