Replies to This Discussion

Permalink Reply by jffree1 on March 31, 2010 at 10:41

It would depend on how many mineral acres you have in the unit and what your royalty percentage is.

Permalink Reply by jffree1 on March 31, 2010 at 14:08

That's not what he asked, is it? I think he's trying to get an idea of how large or small the check might be when he does finally get one. Can you help with that?

Permalink Reply by adubu on March 31, 2010 at 15:38

question are you sure its only 20,000 mcf and not 20 mmcf for the month? if it only made 20,000 mcf at $4 gas per mmcf then the gross on this well is only $80 for month. if you have 25% r and 100% of minerals your check is only $20 for month. Most people may have ~1% net royalty in unit then your check is only 80 cents, so if production stays same for year you would be send check for $9.60 at years end. The operator would probably plug this well. If well made 20 mmcf for month then gross would be $80,000 for month and if you had 1% net r your check is $800 for month. NG price at Henry Hub list as $ per 1000 mcf so a well making 20 mmcfd make at $4 gas $80,000 gross per day or if avg that for month = 600 mmcf for month and at $4 day gas = $2.4 million dollars for month and 1% net r = $24,000 --hope this help and you have missread amout gas produced

Permalink Reply by Les Bamburg on April 1, 2010 at 15:23

Adubu, sorry but I have to clarify some errors.

20,000 Mcf is the same as 20 MMcf.

Natural gas prices, including Henry Hub cash and NYMEX, are stated in $ per MMBtu which is roughly the same as $ per Mcf.

So a volume of 20,000 Mcf at a price of $4 per Mcf would generate $80,000. A 25% royalty would be $20,000 if the mineral owner had all the acreage in the unit.

Permalink Reply by adubu on April 1, 2010 at 15:38

Les B--yep that what i calculated in later part of answer, you are 100% correct ---my wine level was little too high at time of reply last night--nice dinner with some old friends--thanks for correction was thinking 20,000 cf rather than mcf. lol :)) If I was a Liberal Democrat I was delete to hide my reply.

Permalink Reply by Les Bamburg on April 1, 2010 at 17:51

Adubu, I figured that was what you meant. Sounds like it was a great time by all.

Permalink Reply by DPS on April 1, 2010 at 0:54

Here is a link to a Natural Gas Royalty Calculator.

http://geology.com/royalty/

Permalink Reply by H1 on April 1, 2010 at 12:53

I am an amateur at this and ESPECIALLY at math, but the 20,000 number probably came from the RRC site which reports everything in MCF. So, 20,000 reported in the production column is 20,000, (thousands) or 20 million (MMCF). . 20,000 MCF is 20 MMCF.
They do that for accuracy. Just a guess as to the confusion Please don't beat me if I am wrong but it looks like simple math.

Permalink Reply by James Ross on April 2, 2010 at 4:18

You are correct the numbers came from the RRC site, they are given in Mcf. The well was completed in May of 09, with production numbers listed starting in July, but no payment yet. It is producing an average of26,000 mcf a month and 700 bbl of condensate. What is condensate and do you get paid for it? Thanks for all the replies.

Permalink Reply by adubu on April 2, 2010 at 4:30

condensate is liquid hydrocarbons in natural gas that condense to liquid as it comes to surface. Yes you get paid price varible to density as price similar to crude per barrel--you like a well with lots of it. This is reason you see storage tanks on some gas well drill sites. If gas is "dry" no condensate produced. That's my understanding

Permalink Reply by H1 on April 2, 2010 at 5:38

If it was producing in July last year, I would think you should have already gotten a check. I THINK they have 90 days to begin payment, but maybe that is division orders. Have you received the division orders yet?

Permalink Reply by James Ross on April 3, 2010 at 4:43

According to the RRC site they have 120 days to start payment after production begins. A relative is in the unit and wanted me to help, the well is actually located in Panola county, but I have interest in Shelby county and follow this group, I also get more input from this group. The well was drilled by XTO, but EOG makes the payments, it all seems like slight of hand to me, but what do I know. They claimed they couldn't find her name on the unit, which is strange because they drilled the well on her property and paid damages for the well and pipeline and she participates in the five other wells in that unit that XTO drilled. When I brought all this to their attention, they miraculously found it and are going to start paying next month.

• ‹ Previous
• 1
• 2
• Next ›
• Page