Mineral Right Royalty Value

Legal description is: An Undivided 20/268.8ths Mineral Interest in all of Sec. 19, T146N, R97 West, Dunn County, North Dakota (20 net acres)

The Porcupine 1-19H has produced 123,969 barrels of oil as of March 2014 with an IP date of September 8 of 2011

I have no lease and just found out about this.

Can someone tell me how much Royalty money would roughly be due me based on this information? I have no idea all new to me.

Just a rough low ball idea.



It would be helpful if you could supply at least a general number, a royalty percentage you are offered or 16% statutory force pooled royalty.

There are royalty calculators online. A low safe price per barrel would be $80 per barrel. I have a couple wells that started producing at the same time yours did and my oil sold for $93 a barrel at the time but there have been times when the price received had fallen to $73 a barrel, briefly. I think you can use $80 and err on the side of caution. You can run it multiple times with the royalty % from 16% to 20%. This is the kicker, you will probably only get to keep 70% of what it tells you after taxes because they are not included. Taxes are pretty fierce in ND 11.5% production and severance combined plus state income tax up to 4%, then you have federal tax to contend with, even with the 15% depletion allowance.

My oil from multiple operators sold for just over $90 last March. Your well produced 2,932 barrels oil in March and gas was flared. Some gas has been sold in the past but it won't change the equation. I hope this helps.

RW this is all new to me. I looked at the calculators and have no idea how to plug in the numbers at this time. Hopefully when I get a royalty check it will make sense to me. Right now this is all Greek to me. If you would be so kind as to give me the lowest guess on what I have here, less all tax's. I would really appreciate that. BTW I live in Florida, if that makes any tax difference (no state or city tax's) I have no royalty offer or lease as of yet. Waiting for Sinclair to get back to me on this. That is why I am asking (low ball it if you can)



You have to pay ND state tax if that is where your well is, the money was not "earned" in Florida.

123,969 X $80 = $9,917,520 < 1280 acres = $7,748 per acre X20 acres = $154,961 X 16% {if you do nothing, not lease] = $24,793. after taxes you will probably keep 70% if you aren't in a high tax bracket. so $17,355. This is assuming you are force pooled, and also years down the road you would have a working interest and collet 100% less cost of production and taxes.

20% lease = $21,693. You might possibly get $1,000 or more bonus per net acre, depends on your knowledge and negotiating skills.