I have acreage in Blaine County:
NE/4
Section 019-T16N-R13W
I am currently entertaining leasing and purchasing offers. If I do a leasing with 3/16ths royalty, and am fortunate enough that they successfully drill for oil, what amount of royalties might I expect per acre/per month? I am sure it can vary greatly, but what on average or ball park estimate would be a number or range that I might expect?
Thanks in advance for any input.
Jerry, It will all depend upon which reservoir or how many reservoirs, vertical or horizontal well, oil or gas, price of oil and gas, how many feet of perforations, etc. A little too complicated to give you a short answer estimate. The closest well to you is in section 17 (Teel 1-17H), so that would be a clue. Wells decline as soon as they start producing, so the number is ever changing. I would expect both oil and gas in your section.
I have a spreadsheet that you can use if you are still interested in estimating.
I will look at anything that would help me figure an estimate. Surely someone is getting a royalty check somewhere? I'm just trying to get an idea of a range, such as from $10-$1000 per acre per month per acre per month. Is $10 too low? $1000 to high? I'd be happy to look at your spreadsheet.
How many acres do you have? I can pre-populate it for you based on the production from the nearby well.
Add me as a friend and we can take this to a more private area. It is a pretty complicated answer.
Jerry Foster said:
I will look at anything that would help me figure an estimate. Surely someone is getting a royalty check somewhere? I'm just trying to get an idea of a range, such as from $10-$1000 per acre per month per acre per month. Is $10 too low? $1000 to high? I'd be happy to look at your spreadsheet.
Ok, I sent you a friends request. Thanks.