I was hoping some of you could help me with numbers...We keep coming up with different ones...
If you have 80 Acres and the well is producing 300 barrels per day for 30 days straight at $90per barrel ???
What number do you come up with and what formula did you use? Thanks
R.M.S.:
First, you left out some required info. The number of acres in the spacing unit (usually 1280; sometimes 640) and your % royalty. If you will google "Mantra Land Services"; click on "Resources"; find the Oil and Gas Calculator on the left side of page; click on this and plug in your numbers in the Oil Calculator section (second section). Keep in mind, severence taxes, etc. will effect your royalty payment. Hope this helps.
Your participation in the unit is relative to the size of the unit, for instance 80 acres represents 25% of a 320 acre unit and if, and I repeat if, all the royalty is the same in that unit, say 1/5th, you would recieve 25% of 0.2000 X 300 BOPD x 30.4 days a month x 90.00, or about 41,000.00 dollars. If the unit size is bigger your interest is diluted; 80 acres over 640 acres, by example, means you recieve only 1/8th the total royalty, or 12.5% of 0.2000.
Edit: by the time I submitted my post, I see two essentially identical replies. Deleted for redundancy.
I'm sorry...Its 80 of 1280
R.M.S.:
What % royalty?
R.M.S said:
I'm sorry...Its 80 of 1280
100%
R.M.S.:
Based on the info you provided, I figure $1687.50/day, less of course, severence tax, transportation costs (if applicable).
Assuming that there is no non-participating royalty interest on his 80 acres.
(NA/UA) x LR x MP x $= Check, then less costs, taxes, etc
NA Net acres
UA Unit acres
LR Lease royalty
MP Monthly Production
$ Sale dollar per unit
we have something simular, we have two wells
#1 is 680 unit the acres are 170 it is 1/5 royalty per lease my part is 1/48
#2 is 320 unit the acres are 100 it is 1/5 royalty per the lease and my part is 1/48
say it is 100.00 a barrel and producing 500 barrels a day, what does this come out too
nancy:
Based on the figures you provided, this is what I come up with: #1 = $52.08/day ; #2 = $65.10/day ; Are you sure this 680 unit should not be 640 (which is norm); on 640 this would be $55.34/day. Of course, these figures are before deductions (severence taxes/transportation, etc.)
I believe the 640 is correct, so it would be
170/640 (net acres/unit acres pooled)=.265 x .20 (1/5th royalty)=.053 x .020 (1/48th my part)
=.001 x 100.00( if cost of 1 barrel of oil)=.106 x 500 (barrels a day production) =55.34 /day x 30 days = 1660.00 a month x 12 months = $19,920 a year
and on 320 acres unit acres
100/320 (net acres/unit acres pooled)= .313 x .20 (1/5 royalty)= .063 x .020 (1/48th my part) = .001 x 100.00(if cost of 1 barrel of oil= .125 x 500 (barrels a day production) = 62.50 /day x 30 days = 1875.00 a month x 12 = $22,500 a year for both it would be about $42,420.00 a year
and this is for a non-participating royalty owner. is this how you came up with the amounts
nancy:
I use an oil and gas calculator whereas I just plug in the numbers.
nancy peterson said:
I believe the 640 is correct, so it would be
170/640 (net acres/unit acres pooled)=.265 x .20 (1/5th royalty)=.053 x .020 (1/48th my part)
=.001 x 100.00( if cost of 1 barrel of oil)=.106 x 500 (barrels a day production) =55.34 /day x 30 days = 1660.00 a month x 12 months = $19,920 a year
and on 320 acres unit acres
100/320 (net acres/unit acres pooled)= .313 x .20 (1/5 royalty)= .063 x .020 (1/48th my part) = .001 x 100.00(if cost of 1 barrel of oil= .125 x 500 (barrels a day production) = 62.50 /day x 30 days = 1875.00 a month x 12 = $22,500 a year for both it would be about $42,420.00 a year
and this is for a non-participating royalty owner. is this how you came up with the amounts
Mr. Cotten;
Regarding your statement "Assuming that there is no non-participating royalty interest on his 80 acres.", a few questions (and I am still waiting on my well to arrive)..... 1) How can I find out if there is non-participating royalty interest?, 2) How does it affect the calculations?, 3) How "normal" is it to have Non-participating Royalty interest in a well/unit/etc.?
Thanks in advance
FO
how does the nonparticipating royalty interest affect how you figure pay for 500 barrels a day, did you get a chance to look at how i figured the 2 wells we have with non participating royalty interest, did i figure it right?
Buddy Cotten said:
Assuming that there is no non-participating royalty interest on his 80 acres.
(NA/UA) x LR x MP x $= Check, then less costs, taxes, etc
NA Net acres
UA Unit acres
LR Lease royalty
MP Monthly Production
$ Sale dollar per unit
Dear Ms. Peterson.
If you have strictly a non-participating royalty interest, the formula can go two ways. If you ratify the unit (which I think is the right thing to do, even if drillsite), the formula would be:
(NA/UA) x NPRI x MP x $= Check, then less costs, taxes, etc
NA Net acres
UA Unit acres
NPRI Non Participating royalty interest.
MP Monthly Production
$ Sale dollar per unit
Here is where it can get a little tricky. If your NPRI is reserved as a express royalty figure (such as "I reserve, as royalty, the equal 1/48 part of all oil, gas and other minerals which may be produced..."), then your NPRI is 1/48th.
If the reservation is created as a percentage OF royalty (such as "I reserve, as a Non Participating Royalty Interest the equal 1/48 share of the oil and gas royalty. If Grantee elects to develop the minerals in lieu of lease, then I am entitled to the equal 1/48th share of production"), then your NPRI would be calculated by (NPRI x Lease Royalty).
It even gets a bit more complex than that, but this is the basics only. I could keep typing for a long time on this subject.
I have a question when it comes to this post and regards to horizontal drilling and multilateral wells.
How do the oil companies ensure that they are not draining oil from mineral acreas nearby when they are producing from a horizontal well. Do they have to lease all mineral rights in a a certain area near the well to ensure this or ??
Why are they not drilling more multilaterals?