How is my royalty forecast calculated?

ShaleCast employs a massive amount of oil and gas production data from over 25,000 hydraulically fractured wells in key shale plays across the US to create your individual forecast results. While the specifics of our algorithm are proprietary, we rely, where possible, on the production history of wells nearest yours to help us model your  future production curves.  We forecast your well’s production for a period of 15 years beyond the last production amount reported by the state in which your well is located. Once the production values are forecasted, we use the NYMEX futures market for commodities to estimate future oil and gas prices. Learn more about how we adjust NYMEX prices to estimate your wellhead prices. The production volume forecast and pricing forecast provide the bedrock for your royalty forecast since ShaleCast uses those to generate future well revenue estimates. The last step in your forecast is to apply your specific decimal ownership and any deductions we’ve estimated for you in the future. Learn more about Forecast Adjustments. Your final Forecasted Royalties Remaining is the total of all 15 yrs worth of future income. If you hold the well for that long, we estimate you will earn roughly that amount of income over that time.

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