New well. We own 80 acres of mineral on 640 acre spacing. Meter says its 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=.125x.1875 royality=.02343 500,00/1000=500 x $2=$1000 x.02343 = $23.43 daily for gas 300obpd x$100 =$30,000 x .02343=$702.90 daily for oil , 30 day month estimate $21,789.90 gross then subtract taxes etc lets 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.