Anyone who is willing to fill out US tax information is eligible to purchase (so, you do not have to be a US citizen or a US resident). Once the purchase is recorded at the county, owners will get an owner's account number and deal directly with Chesapeake for all issues. Here is their owners information site: http://www.chk.com/owners/Pages/Default.aspx
Based on the most recent quarterly production report - 3rd Qtr 2013:
Quote
The typical Utica shale well in eastern Ohio produced 137,168 thousand cubic feet of natural gas and 5,439 barrels of liquids from July through September, according to a new report released on Tuesday by the Ohio Department of Natural Resources.
That is enough natural gas to generate about $550,000 and enough oil to generate an additional $490,000 from each of the the state’s first 245 Utica shale wells or nearly $1 billion a year from all the wells.
That is enough natural gas to generate about $550,000 and enough oil to generate an additional $490,000 from each of the the state’s first 245 Utica shale wells or nearly $1 billion a year from all the wells.
So, the average well produced $1,040,000 in products (gas, oil, etc) July, Aug, Sept of 2013
- If the driller takes 1/4 as production costs, that leaves $780,000 'profit' to deal with among the royalty owners of the drilling unit (a 640 acre block).
- If I have 90 of the 640 acres, that means I have .14025 interest in the $780,000. That comes out to $109,687.
- This is the lowest percentage at 640 acres. Current drilling units are all under 200 acres each. At 200 acres, the calculation would be 90 acres / 200 acre unit = .45 instead of .14025.
- This is the lowest percentage at 640 acres. Current drilling units are all under 200 acres each. At 200 acres, the calculation would be 90 acres / 200 acre unit = .45 instead of .14025.
- The royalties due to my lease on the $109,687 would be 17.5% or $19,195 for the 3 month period.
- 10% of that would be $1919.53 for the three month period for that single well.
Well pads are configured for multiple wells, the average configuration in this area is for six wells to a drilling pad. So:
- If there are 3 wells on the well pad, that would be a total of $5758 for Jul/Aug/Sep
- If there are 6 wells on the well pad, that would be a total of $11,517.19 for Jul/Aug/Sep
Wells typically produce a lot at first with 1/2 of their lifetime output in the first five years. Then they tail off for the next 10-15 years. Producers are expected to re-frac wells once they've tailed off, so that could also cause a bump in the later years of the total life of the well. All of the wells in the report referenced above (and found at the link below) are within the first 2 years of production.
The article where I took the quote from: Akron Beacon Journal Online : http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/ohio-releases-first-quarterly-production-data-from-utica-shale-1.456233
The actual quarterly production report: http://oilandgas.ohiodnr.gov/production - a red button for an excel spread sheet of the individual well production numbers.
