Majority of Marcellus Wells are Paid Off
Thursday, October 10, 2013
The Marcellus shale isn’t the financial disaster that some critics have coined it, according to Terry Engelder, a professor of geosciences for Penn State University. Engelder recently talked with The Patriot-News about the profitability of Marcellus wells.
According to Engelder, 78 percent of the producing horizontal natural gas wells in the Marcellus have already paid for themselves, assuming a cost of $5 million a well at $3.5 per thousand cubic foot of natural gas.
There’s an estimated 489 trillion cubic feet of recoverable gas in the Marcellus, a figured Engelder still stands behind.
» Via: The Patriot-News , Three-fourths of the producing horizontal-drilled Marcellus gas wells paid off: Penn State prof
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.