Is there a way to guesstimate what a royality payment would be? Been producing since August (3100BBL). We have 160 gross acres and each own 10.67 net acres at 18% royality.
CARLSON 159-94-4B-9-1H is the well
9505 barrels produced, 9281 barrels total production (3 months) sold as of October, sold is what you will be paid on. As there could be several more months before you see your first check I won't hazard a guess as to how much it will be for, I can't easily get november production, because it is not posted yet except in the general statistics on the NDIC site, along with thousands of other wells, not easily searchable. Your spacing is roughly 1280, so dividing 9281 by 1280 yeilds 7.25 barrels per acre total barrels sold. 7.25 X 10.67 = 77.36 barrels X .18 = 13.925 barrels X $80 [ just a number from the air ] = $1114. Now the bad parts, you have to figure for 11.5% production and severance tax, probably 4% ND state income tax, federal income tax and any deductions your operator can deduct from your royalty. Many people are surprised at how little they realize from leasing their minerals. Much of the oil from ND is very high quality but transportation costs can make it sell for less. I picked $80 as an average and it should be fairly close. I hope I got you close enough that you can have fun sitting down with a calculator. I caution you to never count on that royalty check. Operators can shut down the well for weeks or months at a time and can control production at their whim by having someone turn a valve. I hope this helps.
thats over 3 months though... so a good guess would be about $300?