New well. We own 80 acres of mineral on 640-acre spacing. Meter says it’s producing about 500,000 mcf/day and 300 bbl oil/day. Gas selling around $2.00/mcf. Lease for 3/16’s. About what will first month’s check be?
Estimate 80/640 = .125 x .1875 royalty = .02343. 500,000/1000 = 500 x $2 = $1000 x .02343 = $23.43 daily for gas. 300 obpd x $100 = $30,000 x .02343 = $702.90 daily for oil. 30-day month estimate $21,789.90 gross then subtract taxes etc. Let’s say 20% = $17,432 check. This is just an estimate with figures you gave.
Thanks
FYI - Since that’s a new well, that might be the initial production rate on unchoked flow.