A good horizontal
Marcellus Shale well with a 5,000 ft.
lateral can drain a 180 acre
rectangle and produce about 6-8 Billion Cu. Ft. of
gas over 20 years, the life of the well.
The O & G's
companies intend to bring up every cubic
foot of Marcellus and other Shale Gas from under properties leased.
If no production begins before
the term of lease expires, the Lessee will have pay
to renew lease, understandably they want to avoid that.
Some gas companies
acquire leases, unitize an area then drill one well to 'hold by production'
(HBP); thereby renewing the lease
indefinitely.
Once the Oil and gas companies
secure their leaseholds
they will return to continue drilling, gradually bringing
all the gas to market.
With today's technology
a single horizontal 10 stage frac well is initially averaging of 6 Million Cubic Feet a day (MMcf/D)
Picture above shows 24 wells on four pads
to minimize the surface footprint; hopefully this approach
prevails.
Too many factors change how much
in
royalties a landowner might receive, but it could
range from $10.00 - $30.00 per day 'per acre in a unit'.
If the
estimated ultimate recovery
(EUR) for a
well is 4-6 Bcf/20years at $4.40/Mcf,
the Lessor may visualize over $50,000.00 for each acre.
