Hello to all. I have all the data needed to figure out minerial royalty, but don't know the equation. Would anyone please assist? Show me how to do it? The section is 640 acres, own surface of 240 acres, 12.00 net mineral acres, 1/6 barrell. Also, plug in 333 BOE per day which is 9990 BOE per month at $95 per barrel. I would like to see the entire calculation, that way I can plug in any number of barrels per day and per month. Thanks to whomever for your time and effort, it is appreciated.

Is the well spacing based on 640 acres or 1280? many of the areas are combined for 2 sections to a spacing

Hello. Thanks for your assistance. It is in the Park-Bakken. I believe they are spacing as 1280. As when I look on the ND gov well search map, there are only 2 wells per 640 acre section. The well stands in section 13-140n-100w. The mineral rights are in 24-140n-100w, as the one well is drilled south horizontialy into our section 24. Of course, if they put up a second well, then there would be 2 drilled south into our section 24. Hope this helps.

The map suggests that it is a 1280 acre spacing (Sec 13 + 24) and there are TWO wells that are listed as plugged or producing (20504 and 20672) but have not been released as to their yield. So you should be participating in yield from both wells. (That is the way I understant it)

The way I would calculate is that you own 12 mineral acres so (12/1280) X (1/6) X (BO) X (net price that the oilman sells the oil.)

so for 9990 bbl (12/1280) X (1/6) X 9990 X 95 = 1483

Boe is not the same as barrels of oil, it is barrels of oil, and gas equivalent in energy of barrels of oil. The gas equivalent to a barrel of oil will sell for alot less than a barrel of oil as I understand it. I think BOE is mostly used in press releases, to make the well look good. All of that gas could be flared and not sold for up to a year and you may get nothing from it. You should also be ready for a decline of production of oil, as much as 30% a month in the first few months. The spacing is 1280 according to the GIS server map. Congratulations on your well, but I don't think you can make any close order calculations on your royalty until you see what is sold and what it sold for. I would feel optimistic, but don't count your chickens before they are hatched.

Thanks to both of you for the reply. 20672 drills into gov minerals out of our section, we get nothing for that. My bad to use BOE. I meant just straight oil, no gas equivalent. The gas won't be flared, its piped to the plant in Belfield, so thats good. Wells in nearby sections, even though still on the confidential list, have started off from 13,000 to 20,000 barrels per month over the first 3 months. Someone who knows told me. Yes, that will taper down, I am aware. Thanks again for the equation, I appreciate it. PS-I won't count them chickens too early! Ha!

Jeremy, I'm glad you are feeling good about things and that you also have your feet on the ground. I hope we can get, and that oil field price stays in the mid $90 range, or rises. My oil sold for $90 last Oct and $93 last Nov. I sometimes use the mineral calculator under mineral help at the top of the page to get an idea of what I can put in my pocket. I deduct 40% from the number it gives me for taxes, state, production and federal, and the lower field price of the oil. I don't count on getting the gas, as my wells only sell it when the market allows.

Yes, now I know how to use the calculator! Thanks again!

Also I think of interest to you is the well in the next spacing east T-140 R99 sec 18. I think Whiting nailed it 186k barrels oil in 9 months, very little water, but they have flared most of the gas to date 177,544 mcf of 221,000 mcf. At any rate you are in a very good neighborhood.

Jeremy S said:

Yes, now I know how to use the calculator! Thanks again!

Where is this mineral calculator?

If you mouse over mineral help at the top of this page, royalty calculator is the first selection in the drop down. I believe that you must find a link on the first page to actually get to the calculator. Look for where it says natural gas royalty calculator and oil royalty calculator in light blue. Click on your choice of those to reach the calculator.

AndyB said:

Where is this mineral calculator?

Thanks

r w kennedy said:

If you mouse over mineral help at the top of this page, royalty calculator is the first selection in the drop down. I believe that you must find a link on the first page to actually get to the calculator. Look for where it says natural gas royalty calculator and oil royalty calculator in light blue. Click on your choice of those to reach the calculator.

AndyB said:Where is this mineral calculator?

Thanks again to both of you!!

Hello! Good ol' taxes! Ha! Thanks for the excel tip. The wells in the area are doing pretty good. Ours went online 12/17/11, so am looking forward to see how it does after 3-4 months in oil runs, if it gets printed. If not, we'll see after it comes off confidential. Thanks again.

Joel said:

Jermey:

Do not forget to take 11% off for wellhead tax they take that out of your royalty. What I found more helpful than a mineral calculator is to set it up on excel. Keep all your toogles at top or to the left, that way you can see the different scenarios on multiple variables.