Looking for online gas royalty estimating tool. I want to input production Mcf, well head price, acres owned etc. Is there something available. Also, if the total section is 640 acres and it is split 66.7% in one section and 33.3 in another section how do I formulate (or input) this to make the gas royalty accurate?

# Need online gas royalty estimator

You are dealing with a 1280 acre spacing. Hopefully your minerals are in the 66.6667 section?

640 acre spacing Tom. And we are in the 66.7 section

The calculation is gas production rate times gas price times production days per month times unit factor times your interest times times your royalty. I will assume that you own 40 acres because you don't say how many acres you own. I will also assume 3/16 royalty, $2.00 per mcf and 30.4 days per month (yearly average used in the oil business). Production taxes tend to be 1 or 2% for new gas wells in Oklahoma. I ignored the tax. Some leases include deductions for post production processing, etc, and I have ignored those. These costs tend to become significant when production declines or is small to begin with.

Here is the calculation: (500 mfc per day) times ($2.00 per mcf) times (30.4 days per month) times (2/3 unit factor or 66.7% unit factor) times (40 acres net / 640 acres gross) times (3/16 royalty) equals (your royalty payment per month).

500x2.00x30.4= $30,400 per month in gas revenue for the well

500x2.00x30.4x2/3=$20,266.67 per month for your tract

500x2.00x30.4x2/3x40/640= $1,266.67 per month for your acres (whole interest)

500x2.00x30.4x2/3x40/640x3/16= $237.50 per month for your royalty interest