Good evening. I'll be assisting you with your question.
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.
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.
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.
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.
$1000 per acre how often? LOL I am totally inexperienced with this!
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.
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.
It all depends on how much it produces and the price of oil per barrel. 20+ barrels a day is not at all uncommon.
20 barrels a day is what a hydraulically fracked well produces on average?
No, that would be on the very low end.
There isn't an "average" per well, since it all depends on the formation it is coming from, how much has been extracted, etc.
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
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.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).