I received a DO from great horned owls in February regarding acquisition of Contango wells Bulling 18-19N-2W 1WMH and Crossfield 28-19N-3W 1WH. The decimal interest on both is off by a few zeroes. I have been reading on the forum about other problems with GHO but haven’t found anything on this issue yet. I have tried emailing the address included with the DO with no response. I am incredibly brand new to all of this so any advice would be greatly appreciated.
A few zeroes on the front end or the back end of the decimal?
In OK, the decimal is calculated by the formula: net mineral acres /actual spacing acres x royalty x % perforations in your in the spacing unit.
Example: 10 acres in a 640 acre unit @ 1/5th royalty and 45% of the perfs in your section of the spacing unit would be 10/640 x .20 x .45=0.00140625. Some Division Orders list a tract participation amount and those can be a bit trickier to figure out.