Does anybody know what the approximate royalty payment should be per acre for well 20761 assuming a 1280 acre spacing and 3/16s interest? The well was sold by Zenergy to Oasis a couple months ago and some of our royalties are currently in suspense, but the dollar amount doesn't look correct to me. The well began producing in March, and it looks to me like we should have received about $700 per acre through the end of the year. Can anyone double check my math and see if I'm crazy?
I too have issues with Zenergy withholding some royalties, but under a different well number. Perhaps we should compare notes.
James,
(74791 * .1875 * 85 * .885) /1280 = $825/acre
I participated in a well drilled by Zenergy and sold to Oasis this year...this well started producing in May.
I received a single 1099 from Zenergy for the correct amount for the entire year's production.
-luke
I'm not too concerned about them withholding the royalties. They were very straightforward when I talked to them today. My concern is about the dollar amount. I'm not confident I'm calculating it correctly. Lets say I have 150 acres in a 1280 acre spacing unit with a 3/16ths royalty. If they pump 10,000 bbls, my royalty should be somewhere in the neighborhood of $15,000-$20,000 based on the price of oil. Is that right?
Thanks for your help,
James
John Murray said:
I too have issues with Zenergy withholding some royalties, but under a different well number. Perhaps we should compare notes.
Luke, you're awesome. Thank you.
Luke Aafedt said:
James,
(74791 * .1875 * 85 * .885) /1280 = $825/acre
I participated in a well drilled by Zenergy and sold to Oasis this year...this well started producing in May.
I received a single 1099 from Zenergy for the correct amount for the entire year's production.
-luke
Is this fairly average production?
The production is good, but you will benefit from Oasis taking over.
James said:
Is this fairly average production?