I received a Division Order 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 Division Order 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.
Contango had the decimal interest as 0.033124, and GHO has it as 0.00033124. There is the absolute minimum of information on the division orders: Property #, property name, interest, County, and operator. Thank you so much for your help!
~Shannon
That is a significant difference. If you know your net acres and royalty, you can use the formula above to figure out which is right. If you have low acreage, the one with the three zeroes is probably the right one.