Pyramid wells - STATOIL

North Dakota Mineral Rights Williams County, ND
1

Hello All,

I was wondering if anyone can give me any information on the pyramid 15-22 wells in Williston ND. We have yet to receive division orders but were told we should see a check during July's write. I have been trying to figure out total production numbers for the wells. Can anyone help me with that? Also, there are four wells on the site. Would we be entitled to production on all four wells? We have interest in section 22 154n 101w - around 18 net acres. Any help would be greatly appreciated. We do not know much of this process as my father was the one who signed the original lease and has since passed away. He deeded his interest to us and we are all in our late 20's early 30s with little to no experience in this industry. Thank you all for your knowledge and input.

Hilary Sorenson

2

451,081 as of May for all 4 wells combined. Yes, you would be entitled to royalty from all 4 wells.

If you use a royalty calculator, I would not expect to pocket more than 60% of the total it gives because the tax is going to be large and you will likely not be getting WTI or NYMEX price to begin with.

60% is even factoring in the 15% depletion allowance from your federal tax. People are often dismayed at how little they receive from the production of their minerals, it should still be a nice chunk of change though.

3

Thanks R W - Your knowledge is appreciated more than you know!