Share 'Is $81,250 Total Return a conservative estimate for royalties over the life of the play for 1 acre? Or I could use Cheseapeake's numbers and arrive at $142,187.50'
Check my math.
If the EUR for 1 section is 52 BCF
divide 52,000,000,000 by 640 acres
divided by 4 (25% royalty)
divided by 1,000 (mcf)
multiplied by $4.00 per mcf
Does this sound reasonable?
Did I forget to include something.
I tried to be VERY CONSERVATIVE.
FOR SOME REASON CHESAPEAKE HAS A STORY OUT USING $7.00 FLAT PRICE FOR GAS. I A…
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As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More