I am trying to figure out how many net royalty acres I own. I am looking at selling a term royalty that I own. Before I sell I would like to know how many acres I own. Most offers I have received have been based off a NRA. How can I figure out how many acres I own?
My net revenue interest in the well is .006945
The well covers 640 acres.
I don’t know what I am leased at. Would it be possible to figure out how many NRA’s I own without it? I’ve been told that I could own 4.5 acres and I’ve been told I own 35 acres. I just want to know what I own before I decide to sell or not.
It may be possible to determine what the company calculates your interest to be if the royalty percentage is known. There is a way to back into that number. Then again, division order analysts make mistakes.
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I don’t have a division order. I can see if I can find one.
I have been told that if I multiply the amount of acres the well covers X the net revenue interest decimal on my pay stub X 8, that I will get the amount of NRA’s I own.
My calculations are 640acresx.006945NRIx8= 35.5584NRAs.
I had one company tell me that the formula is 640acresx.006945NRI= 4.4448 NRAs.
I am considering selling and most offers I receive are based on a NRA. I want to make sure that I am selling the right amount and not being taken advantage of.
Without knowing your lease royalty, you can’t figure out how many net acres you have.
If your interest is leased on 1/8th royalty, that would equate to 35.5584 net acres.
If your interest is leased on 3/16th royalty, that would equate to 23.7056 net acres.
If your interest is leased on 1/4th royalty, that equates to 17.7792 net acres.
So you have to find your lease royalty to determine how many acres you own. It is doubtful that the
division order will state the lease royalty or number of acres, but it might.
Good Luck
You have 35.6 NRA. If you have a .006945 decimal in a 640 acre unit. End of story.
A net royalty acre is just a normalized measure of ownership. It’s equivalent to the ownership of one acre at 1/8 royalty. Doesn’t mean your royalty is 1/8, doesn’t even mean you have mineral ownership at all…could be an ORRI or an NPRI.
How many acres at 1/8th royalty does it take to have .006945 decimal in a 640 acre unit?
.006945 * 640 * 8 = 35.5584. Like you said.
There is a small subset of folks (e.g. Viper) that will tell you that you have 4.44 NRAs but that’s disingenuous. That’s just so they can offer you 7 times more per net royalty acre than everyone else.
IMO people have to be careful throwing around terms like “how many acres do I own” because “acres” and “net royalty acres” are not the same thing and people will give you answers to all sorts of things that are some sort of “acre”.