How do you calculate interest for multi-section wells? I have several two-section well interests, but now have a three-section well.
Your calculation for the Division order decimal is:
net acres/actual spacing acres x royalty x % perforations in your section.
The reason I said “actual spacing acres” is that a well may be spaced at 640 acres for each section, but the sections on the northern tier and western tier of a township are not usually exactly 640. The OCC will give an order that lists the exact percentage of perforations in each section, so that is the final determination after the survey is run.
Thanks! Was not sure if the third section would change calculation. Appears it does not. My math closely matches DO analysts.
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