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Chris T., JD
Chris T., JD, Attorney
Category: Legal
Satisfied Customers: 4816
Experience:  Experienced in both state and federal court.
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I was wondering if any oil and gas lawyers could estimate for

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I was wondering if any oil and gas lawyers could estimate for me an average amount per acre a person might expect to get if their lease is successfully hydraulically fracked in a popular shale area. I know it all varies and it is just general info...I just wonder what kind of money per acre is the norm.

TexLawyer :

Good evening. I'll be assisting you with your question.

TexLawyer :

As you might imagine, this is a very broad question. It all depends on the likelihood of finding a producing well and what share the landowner takes in production.

TexLawyer :

That said, $50 per acre would be the lowest you would see, but I've seen leases go up to a couple thousand an acre in higher producing areas.

Customer:

My ground is leased along with others in blocks of 360 acres and we would share 18%. We already leased in the New Albany Shale and they are drilling test wells now that the IL governer has sign off. They have compared this area to the Baken Shale....and I just wondered if anyone knew just a ballpark average of what a landowner might get per acre if a successful well is fracked.

TexLawyer :

If it is producing you should get a significant amount per acre, well over a $1000. At least, that would be fairly standard in Texas. But, it all depends on many, many factors. That is a VERY general ballpark.

Customer:

$1000 per acre how often? LOL I am totally inexperienced with this!

TexLawyer :

Typically, that is a one time payment. The price per acre, at least in Texas, is sometimes called a "bonus" payment. The real payoff is the percentage you take. Don't focus too much on the bonus per acre, since that is usually a relatively small amount relative to the value of the production, assuming you have producing property.

Customer:

I already signed my lease and got my bonus..what I am curious about is if they drill and it is a successful well, what is an average amount per acre (a day, week, month..I don't know how it works) would a person get on average if they shared 18%. I just have no idea what kind of money someone makes off a fracked well.

TexLawyer :

It all depends on how much it produces and the price of oil per barrel. 20+ barrels a day is not at all uncommon.

Customer:

20 barrels a day is what a hydraulically fracked well produces on average?

TexLawyer :

No, that would be on the very low end.

TexLawyer :

There isn't an "average" per well, since it all depends on the formation it is coming from, how much has been extracted, etc.

Customer:

Ok...they are comparing the New Albany to shales that have already produced for quite some time so I thought someone might know an average people had earned per acre on those shales. Thanks

TexLawyer :

One well may produce 100 barrels a day in one formation, and another formation may be producing 40 barrels a day, and another may be producing 200 per day. Sure, you could average all that together, but that doesn't tell you anything about what yours is going to produce.

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