Gas production/ capture

Hello- Just noticed that our Missouri wells (3) are now producing gas. Total says 370+K. How do you figure potential royalty amounts and what is the current price of an MCF? We are told no payout until September. Appreciate any info ~ Bill

Hi Bill,

Typically the operators will pay net 30 days on oil and 60 days on gas. Gas is somewhat of a black hole in terms of pricing as it depends on BTU content, etc. Also North Dakota has some unfortunate case law that allows the operators to pass through a lot of the compression and transport costs to the mineral owner. In Williams County under Nine Point, we get $2.70/mcf but then lose about 98% to gathering and compression costs so pretty much $0.

Thanks to you both for responding. Wow- that’s some discouraging news!