questions . I have minerals in Dewey county. Continental drilled in section 13-16-16 Edward Lee ....... 54 oil and 10820 gas . How do I figure 53 acres at 1/8th my take on the oil and the gas ? And also do you know who MEP Oklahoma llc is ?
Heather: Don't know MEP. But to figure your "income" you have 53 acres divided by 640 acre X 1/8 royalty or
0.013035156 interest in that section. If normal, this section gets 50% of the production (2 sections for the unit) or
0.013035156/2= 0.00517578 unit interest. Now you can take 10,000 mmcf X 30 days X $3.00/mmcf or approximately $4,600 per month. These are rounded numbers. You will lose some due to transportation, marketing, dehydration, etc. so maybe $4,000/month. That number will drop with production. All approximate or course.
Hope that helps.
Todd M. Baker
Thank you for putting that in terms where I can understand.
Great explanation Todd! Thanks so much! I think I can finally start to wrap my head around the numbers!
TODD: You're a genius, been trying to wrap my head around this for over a year. This is something a dummy like me can understand. Thanks a bunch...