Hi Acreage Thanks for the info regarding the Goshen County...

Hi Acreage

Thanks for the info regarding the Goshen County Auction. It will be interesting to see how it goes, it sure is getting pretty busy around our leases (I wonder why) and hopefully it won't be long before we start to see more results around our area, lets hope we see something from CHK in their presentation next week.

In regards to your question about the 12.5% royalty.


It seems they all have a 12.5% royalty paid in with them, not sure what that exactly means ??Is it the current owners get the royalty from the oil produced ?



Most lease agreements require the lessee to pay the owner a share of the value of produced oil or gas. The customary royalty percentage is 12.5 percent or 1/8 of the value of the oil or gas at the wellhead. Some states have laws that require the owner be paid a minimum royalty (often 12.5 percent). However, owners who have highly desirable properties and highly developed negotiating skills can sometimes get 15 percent, 20 percent, 25 percent or more.


GL