Figuring decimal interest in a well
Looking at a statement just received. Trying to figure if the % of interest is correct. Break down as follows, 160 acre unit, 1.8 acres in the unit, the 1.8 is divided by 3, then the third is divided by 3 again. Statement says I have .00016069 interest in the well.
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Replies to This Discussion
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Permalink Reply by Soundcraft on
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.00016069 is 5/32 of 1%. Something doesn't sound correct to me.
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Permalink Reply by Gas Boy on
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royalty multiplied by acres you control in unit divided by total unit acres = decimal interest
Example:
14.3% x 1.8 acres divided by 160 acres = 0.0016088
What is the royalty or override on your lease?
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Permalink Reply by Tusc-county-man on
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working backwards.....
1.8 divided by 160 divided by 3 divided by 3 = .00125 your acreage interest
.00016069 divided by .00125 = 12.8552% royalty interest.
so .00125 (acres) X .128552 (royalty %) = .00016069 UNIT Interest
Sorry.....on 1M in gross production sales....your take= $160.69
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Permalink Reply by Soundcraft on
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Well thanks for the math; which is what I was inquiring about. Sorry...... don't need the sympathy. Never expected much in royalty just wanted to make sure the math was correct.
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Permalink Reply by Tusc-county-man on
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Sorry.....it wasn't intended to be sympathy.
It just example of what the payout would be for the decimal interest.
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