Under size of property I have 8 acres Production unit there are 641.02 acres Percentage of ownership I came up with 1.246. Divided 8/641.02 and hit percent Royalty percentage I have 3/16 so I entered 18.75 This automatically enters a decimal of .00002916 Barrels per day is 851x30=25,530 You run the calculation and it comes up with 76.79 per month
What am I doing wrong?
You need the price per bbl., ie. $100/bbl
8/641.02=.01248x.1875=.00234 851x$100x30=$2,553,000x.00234= $5974/mo to you.
Don't forget your gas/month that comes with it as well.
You can use a general price of $4.00/mcf until you see your BTU value which will up the price a bit. Gas volumes run two months behind while oil is usually a month behind.
Thanks for everyone’s help I understand how to figure it now.