Royalty Calculation Help

Oil and Gas Leasing Help
1

I am trying to figure out the decimal interest for the 3 wells that are a part of our spacing unit. Not sure if I am figuring this correctly. Can someone help?

I have 1/10 interest in 160 mineral acres in a 1280 acre spacing unit. I will use 16% as the royalty percentage for a lease.

1/10 x 160 = 16 net mineral acres 16 net mineral acres / 1280 acre spacing unit = .0125 .0125 x 16% lease royalty = .002

Would .002 be the decimal interest for this scenario?

2

Yes.

3

Your calculation is completely correct as I see it. Those big drilling units dilute the royalty quite a bit. I like 40 acre oil wells.

4

Check out this site:

http://www.shalebiz.com/pages.php?page=6

5

Thanks for posting that tool

6

It is correct assuming that you do not have any NPRI interest burdening your mineral interest.

Buddy Cotten