This is the sale of 10% interest in royalties paid from a gas lease for the Marcellus Shale, Utica Shale, and all deeper formations. Want to Sell up to 5 each, 10% interest for 40BTC each. (So, if you want 20% interest, that would be 80BTC) Your interest in the royalties will be recorded on the deed in the name or business of your choice.

Lease is located in an area that is actively being drilled. The in-line processing facility has come on line and is active. The inline processing facility is scheduled to be quadrupled in size (e.g. they have the first of four processing lines completed).

The property has been assigned to a well pad and has had state mandated water tests conducted by the leasing company. The driller, Chesapeake, has been configuring well pads for 6 wells each in this area. But they've been going up to 8 wells each in a neighboring state.

For information:
Utica Shale description: http://geology.com/articles/utica-shale
Marcellus Shale description: http://geology.com/articles/marcellus-shale.shtml

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Why is it illegal again?

I just want to add this information to this thread, it was written up in response to a PM, but I thought I'd post it here as well:

Anyone who is willing to fill out US tax information is eligible to purchase (so, you do not have to be a US citizen or a US resident). Once the purchase is recorded at the county, owners will get an owner's account number and deal directly with Chesapeake for all issues. Here is their owners information site: http://www.chk.com/owners/Pages/Default.aspx

Based on the most recent quarterly production report - 3rd Qtr 2013:


So, the average well produced $1,040,000 in products (gas, oil, etc) July, Aug, Sept of 2013

•    If the driller takes 1/4 as production costs, that leaves $780,000 'profit' to deal with among the royalty owners of the drilling unit (a 640 acre block).
  
•    If I have 90 of the 640 acres, that means I have .14025 interest in the $780,000. That comes out to $109,687.
  
  • This is the lowest percentage at 640 acres. Current drilling units are all under 200 acres each. At 200 acres, the calculation would be 90 acres / 200 acre unit = .45 instead of .14025.
    
•    The royalties due to my lease on the $109,687 would be 17.5% or $19,195 for the 3 month period.
  
•    10% of that would be $1919.53 for the three month period for that single well.
  

Well pads are configured for multiple wells, the average configuration in this area is for six wells to a drilling pad. So:

•    If there are 3 wells on the well pad, that would be a total of $5758 for Jul/Aug/Sep
  
•    If there are 6 wells on the well pad, that would be a total of $11,517.19 for Jul/Aug/Sep
  

Wells typically produce a lot at first with 1/2 of their lifetime output in the first five years. Then they tail off for the next 10-15 years. Producers are expected to re-frac wells once they've tailed off, so that could also cause a bump in the later years of the total life of the well. All of the wells in the report referenced above (and found at the link below) are within the first 2 years of production.

The article where I took the quote from: Akron Beacon Journal Online : http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/ohio-releases-first-quarterly-production-data-from-utica-shale-1.456233

The actual quarterly production report: http://oilandgas.ohiodnr.gov/production - a red button for an excel spread sheet of the individual well production numbers.