Hello everyone. So I leased 92 acres to antero back in 2018 and the other day I received a Division order for payment. I believe the well was set to go online January 1st 2020. My royalty rate is 18%. My decimal interest for the total well production is only .00115957 though. Other wells in the area are producing close to 20 million cubic ft a day of gas. So I’ve been trying to calculate my estimated monthly royalty. I found that antero has their gas prices hedged at $2.99 for atleast the first quarter of 2020 and their all in production per mcf is $2.34 so would mean my royalty would come from the remaining .65 cents? Thanks!
Unfortunately, in my experence, mineral owners do not benefit from the hedging contracts. Your first check from the well will cover many months of production, so usually the largest one you will get. The rest of the checks will usually be for one month. You might want to set the minimum on your division order to be $25 instead of the common $100.00. Your monthly royalty will be based upon the volume produced and the price paid, your net acres and the spacing acres.
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