Larry, the well was spud from 6-18N-1W. Four wells are coming from that location into four different sections. 31-19N-1W, 6-18N-1W, 36-18N-2W and 1-18N-2W. Hudson 36-19N-2W 1WH permit was approved 9-18-13. Surface location in Payne Co.
Yes Larry 31 19n 1w is in Payne county
Ann $3,165 a year at $100 a B for the oil
M. Barnes, What was the date that the drill permit was posted on this site for Logan Sec 36, T19N, R2W to be drilled from a pad in Sec 6, 18N, 1W payne?
It depends upon your spacing unit (80, 160, 640?) . Also you have to calculate the gas. Bonus or no bonus? 1 well or many wells? Which reservoir? Are you accounting for OK severance tax 7% and OK depletion 22%. IRS taxes? How many years of production? Not a simple answer.
Ann–this isn’t Cathy but—I’m 80 years old and all I know is old style math. So, 1 bbl. oil X .1875 (decimal equivalent of 3/16 lease agreement) divided by 640 (well spacing of drilling permit) = .00029297 This is decimal interest per bbl per acre of mineral rights owned. I understand it is carried out to 8 places to minimize errors on total. So, .00029297 X number of mineral acres owned X number of bbls oil sold that month X price of oil = amount of royalty check that month before taxes. And yes, in a year your checks will all be smaller. Gas checks are figured the same way but gas is sold in KCuFt. I also understand that the information on your check about the amount of oil and the price is not current for when you get the check, but for two months previous when they sold the oil. I cannot “swear” to this being the simplest or even right way to figure decimal interest but it seems right to me. We are waiting on our division order order too so when it comes I guess I will find out.
Ann, A couple of added factoids along the line suggested by M Barnes:
I suspect Ron M calculated his response at www.mineralweb.com. When I calculate at www.shalebiz.com, a possible answer comes to $1492 per year. Two reasons as I understand: Shalebiz adjusts for the 7% OK tax and it causes a person to think about the “decline”. In this case I used 50% in the first year. If you go back to earlier discussions on this forum, there is reason to believe the decline on these H wells is as much as 75%. Neither of these two answers includes any revenue from Gas.
I am having a problem accessing the Oil and Gas Permit part of this forum. Is it temporarily not functioning? Says the page cannot be displayed.
Claude, what in the heck ever happened to 7 plus 6 equals 12???
Larry, the well was spud from 6-18N-1W. Four wells are coming from that location into four different sections. 31-19N-1W, 6-18N-1W, 36-18N-2W and 1-18N-2W. Two go north, two go south.
Hudson 36-19N-2W 1WH permit was approved 9-18-13. Surface location in Payne Co. I don’t know what date it was actually posted.
M. Barnes, could you let me know when they spud the well in Payne Sec 31, T19N, R1W. Also, Devon has permission for 3 additional wells in Logan Sec 36, T19N, R2W. I liked the effort you put into the spreadsheet. I have a total of 10 mineral acres between the 2 sections in Payne and Logan.
Larry, you can watch it on the OCC website.
http://www.occpermit.com/WellBrowse/Home.aspx
Type in your location. Be sure to put a leading zero in if needed. Toggle Surface or Bottom hole location. When the list comes up, hit the magnifying glass and then “all images”. Scroll down and pull up the different items such as permit, spud report, completion report, etc.
If you don’t get anything, try the sections adjacent, because sometimes the surface location isn’t where you think it might be. Or leave section blank and work with the T and R. Also, it just doesn’t work on some days if their server is down.
Lotsa current info here
M. Barnes, Thanks Found the drilling permit for Logan 36-19n-2w. It was in the Payne County Forum site.
ANN, MANTA SERVICES IS VERY EASY TO CALCULATE
The problom with calculations is like the problem with statistics, they are usually wrong, and so why bother,m it is pretty much a waste of time until you get the check and then have someone who knows what they are doing do the math if you disagree.
Folks, here is the spreadsheet I put together to do quick calculations of royalty payments. You plug in your particular information in the yellow boxes. You can compare with bonus, without bonus, sell of acres, change price, change spacing, change acres, etc. This is just for estimating, so don’t take the numbers as concrete.
This is for the horizontal Woodford for only 4 years, so don’t forget, wells can go for 20-30 years. The reason I put in multiple wells is that many counties are seeing multiple wells within a spacing unit. You only get the bonus once, but the royalties are for every well. This is a long term game, so comparing for just the first year can fool you. Make a wise choice the first time. Other reservoirs will have different decline rates. Vertical wells will have different decline rates. As techniques improve, the decline rate will change as well.
Our accountant makes us take out the 22% depletion rate upfront if we get a bonus. You can put zero there if you don’t like that.
When I get offers to sell, I always throw them away, but it is fun to see what they are really offering.
If you find an error in my math, let me know. I am always tweaking this to suit my objectives for the moment. NMACalculationsimple.xls
I found M Barnes spreadsheet to be really helpful. I have 5 mineral acres and I found the calculation on the WI decimal to be right on with what Devon has already furnished me.
on your royalty stubs, RI will be royalty interest, WI for working interest for the brave folks. ORRI is for OverRiding Royalty Interest. (Often for the land guys or the geologists-interest paid for services performed.)
M Barnes, Found the info on the OCC website for Payne 31-19n-1w. A permit has been issued. I assume since they are on location with the rig for Logan 36-19n-2w that the Payne well will be spudded shortly along with the other 2 wells for Payne 6-19n-1w location.