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.
.00016069 is 5/32 of 1%. Something doesn't sound correct to me.
royalty multiplied by acres you control in unit divided by total unit acres = decimal interest
14.3% x 1.8 acres divided by 160 acres = 0.0016088
What is the royalty or override on your lease?
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
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.
Sorry.....it wasn't intended to be sympathy.
It just example of what the payout would be for the decimal interest.