Measures on oil production charts

North Dakota Mineral Rights McKenzie County, ND
1

I HAVE BEEN PERUSING SOME OF THE MONTHLY OIL PRODUCTION CHARTS. WHEN A FIGURE APPEARS UNDER THE TITLE "OIL", DOES THAT REFLECT THE NUMBER OF BARRELS OF OIL PRODUCED THAT MONTH? ALSO, THE FIGURES UNDER "GAS". DOES THAT REFLECT CUBIC FEET OF NATURAL GAS OR THE EQUIVALENT ENERGY IN BARRELS OF OIL?

2

David, oil is barrels of oil. Runs is barrels of oil actually sold which would be what royalty check would actually be based on. Some months they don't sell all the oil they produce and other months they sell more than produced. Water is barrels of water. Gas is measured in MCF which is 1,000 cubic feet of gas. In ND most of the wells do not produce as much gas as many wells in Texas or Oklahoma but it is usually very rich gas and sells for alot more than dry gas which may be piped to our homes, my wells in Mckenzie county just don't produce enough of it to be a really significant factor in my check, but I'll take it. The column after gas produced is gas sold. The column after gas sold is flared gas, and I hope this number is 0 or very low because that is gas that is just burned off and you make nothing off of it. Good luck with your wells.

3



r w kennedy said:

David, oil is barrels of oil. Runs is barrels of oil actually sold which would be what royalty check would actually be based on. Some months they don't sell all the oil they produce and other months they sell more than produced. Water is barrels of water. Gas is measured in MCF which is 1,000 cubic feet of gas. In ND most of the wells do not produce as much gas as many wells in Texas or Oklahoma but it is usually very rich gas and sells for alot more than dry gas which may be piped to our homes, my wells in Mckenzie county just don't produce enough of it to be a really significant factor in my check, but I'll take it. The column after gas produced is gas sold. The column after gas sold is flared gas, and I hope this number is 0 or very low because that is gas that is just burned off and you make nothing off of it. Good luck with your wells.

Thank you for your response. David Latta