BearCteek Bill… I received my division orders. But they are in Greek as far as I am concerned. Lol. Can you please explain how they divide and how they come up with the percentages PLEASE?
It can be hard to follow sometimes, especially when the ownership is fragmented.
In simple terms, there is a spacing unit for the well: “N” number of acres.
Then there is how many acres of mineral rights you own inside the well’s spacing unit. “Y”
Then there is what percentage of those mineral rights you own: “Z”% (Maybe you share it with other family members)
Then there is the royalty percentage set in your Lease: “L”%
(Y x Z x L) /N would be your ownership in the well.
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Pam i’m not sure how Rose City is calculating theirs. In simplest terms you would take your acreage which i believe is 12.5 and divide by 720 which is the total unit acreage. Then multiply their royalty offer which i will assume is 1/5 or .2
12.5 ÷ 720 × .2 = .00347222RI
You multiply that number by price of oil and barrels of production.
The completion report shows it’s at 250 barrels per day potential. That could go up or down as time goes on. It’s still producing water. Once that goes down production usually increases especially on horizontal wells.
Depending upon the clauses in your lease, you may have deductions for taxes and post production charges.
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Suggest that you contact the operator and ask for the Division Order department. Ask for the equation that goes with your division order. Ask for the net acres in particular. The Division order folks are usually highly overworked, but very nice.
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