WE CURRENTLY HAVE 6 HORIZONTAL WELLS PRODUCING IN THE “LEA BONESPRINGS” FORMATION. WOLFCAMP A, B, C ARE ALL PRESENT AND WILL BE DRILLED NEXT!
HAVE NOT BEEN PAID ON ANY OF THE PRODUCTION. WE JUST CLEANED UP TITLE AND HAVE STARTED TALKING TO THE DIVISION ORDER ANNALIST WORKING FOR THE OIL COMPANIES. 2.5 MILLION BARRELS OF OIL PRODUCED FROM THE 6 WELLS. I AM TRYING TO FIGURE OUT HOW TO COMPUTE OUR 1% ORRI OF 85% WI. THE LEASES ARE BLM AND HAD A 12.5% ROYALTY, NO PUGH CLAUSE 1 WELL 160 ACRE UNIT 120 ACRES AT 1%= .75 550,000 BO 2 WELL 240 ACRE UNIT 80 ACRES AT 1%= .333 540,000 BO 3 WELL 240 ACRE UNIT 80 ACRES AT 1%= .333 645,000 BO 4 WELL 160 ACRE UNIT 120 ACRES AT 1%= .75 240,000 BO 5 WELL 160 ACRE UNIT 120 ACRES AT 1%= .75 230,000 BO 6 WELL 160 ACRE UNIT 80 ACRES AT 1%= .50 210,000 BO HOW MUCH IS A PRODUCING ROYALTY ACRE WORTH IN THIS AREA?strong text