Are the oil and gas calculators accurate on this site or any other sight. I know they can't be to the penny but how accurate can they be. Has anyone used them that is receiveing a royalty check. Are they close to the figure you are getting? Just checking for future reference.
Thanks
The difficulty with any of these calculators is that they generally do not account for the exponential decline rates of most of these wells.
I imagine that almost all of them overestimate the potential return pretty significantly.
OK to check them out for entertainment purposes, but I wouldn't be making any long-term purchases based upon what numbers they may generate for you.
Very few calculators account for severance, property or income taxes either. In general, I've found you can chop 10-15% right off the top of anything you get in the calculators and that gets you a little closer to what your check will be.
Remember, you have to set aside the income tax dollars as well....
Thanks DJG and Mineral Guy, no well yet not even leased but saw the calculators and was just playing around with them. Just wondered if they were close to any figure someone with an actual well received. Just curious.