It isn't easy to figure all this out, but I will try in layman's terms for you. You say there are 3.00 net acres in one section that are leased on 3/16ths. Because there are 2 sections for the producing unit, the section your minerals are under comprises 50% of the unit. So, you calculate your interest in any all production from either section as follows: 3.00 acres divided by 640 acres, times 0.1875(3/16ths), time 50%. This gives you your share of all production as 0.0004394. Now you can use whatever amount of oil and gas you want to use and project the prices for the same, and come up with whatever number you want to come up with. However, Newfield, the operator of the unit, claims there are 3 million barrels of oil and 53 BCF of gas under the unit. IF, and a big IF, Newfield is correct, using $40.00 per barrel of oil and $3.00 per mmcf of gas, the total revenue you could expect from the Woodford wells in your unit, to be approximately $122,000.00. How long will it take to produce all that revenue? Nobody knows. Will Newfield "take" 7-10% of your revenue for post production expenses. YES. Now, if the price of oil goes up or down and the same with natural gas, all these numbers change proportionately.
Hope this helps. If you want to discuss further, drop me a note: .
Todd M. Baker