Oil production for one month is 6,200 bbl, gas is 40,000 mcf , 20 Percent royalty, no other deduction in the lease except for what they use, we understand prices change daily, just for example if oil is $50 a barrel and gas is $3 using the production amount what would the royalty pay out be? Total acreage lease is 1280 but we own 80 acreas what does this mean? Thank you
Welcome to the forum. Your royalties will depend upon your net mineral acres. the size of the drilling unit spacing.your royalty and how your acreage or feet of perforation contribute to the well, price of products and volume produced. In Oklahoma, the equation is net mineral acres/actual spacing acres x royalty x percentage of perforations in your section. Texas is a similar but depends upon if you have a allocation well or a pooled well. If your lease says 80 acres on it, that may be a gross acreage and not your net acres.
For OK, an example of 80 acres at 20% royalty and 1280 spacing would give the following decimal.
80/1280 x .20 x 1.0 =0.0125. That decimal is multiplied against the operator’s gross sales receipts every month (minus any taxes or deductions your lease allows). The well volume declines over time, so the early months have the highest volumes.
6200 bbl X $50 = $310,000 40,000 X $3 = $120,000, $430,000 total production
your share = 20% 0f 80 / 1280 = .0125 of $430,000 = $5,375
Canadian County Jabroni 13_12-13N-8w, we would like to know as much as possible, thank you
Is it possible to email you with information?
There are two Jabroni wells 1MHX and 2 MHX. What do you want to know? The data is public. They have been online since April of 2023.
Yes that is where we have been keeping up with information on the States page. We have inherited all of this. 79 acres plus 1 acre the well is active and I think another well is being or has been drilled.
We are trying to understand the financial side, the leases ends 2026.
From May 2023 it has sat in trust and gone through probate.
We are trying to understand and estimate the royalties.
Right now as of June 2025 oil 373,848 bbl and gas is 2,458,724 mcfs total produced.
We are expecting a royalty payout from these numbers.
We understand prices change daily for each. To keep it simple, let’s say $50 bbl and $3 mcf straight across for the total produced, what would be the estimated royalty?
Once you have finished with probate, you need to contact the operator and ask to be put into pay. You will need IDs from the heirs, probate docs (make sure they are filed in the county courthouse where the minerals are located) W-9s and whatever else they require.
The lease does not end in 2026 now that there is production. The lease has gone from the primary term to the secondary term which will last as long as there is production that meets the terms of the lease. Good news for you.
Jabroni 13-12-13N-8W 1MXH as of 6/1/25 224,793 bbls oil 1,709,062 mcf gas Jabroni 13-12-13N-8W 2MXH as of 6/1/25 149,029 bbls oil 913,495 mcf gas
You can find the last few months on the OTC site to top off the numbers as the last few months are posted. They usually run about three to four months behind.
You can plug those totals into the equation that sfchuck shared above to get a ballpark. If your net acreage is less than the 80 acres, then the amount will be less. If the lease said 80 acres, that is usually a gross number and not the net.
Remember that you will need to pay taxes on the funds in the year that you receive the check. Put about the same amount aside for the second year because the IRS may demand quarterly payments equal to the prior year’s taxes even though the well has lower volumes. A lot a folks get a huge surprise when they get caught behind. The royaties will naturally decline over the years so be mentally and financially ready for that.
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