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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Permalink Reply by Soundcraft on August 23, 2016 at 7:33am

.00016069 is 5/32 of 1%.  Something doesn't sound correct to me.

Permalink Reply by Gas Boy on August 23, 2016 at 10:24am

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?

Permalink Reply by Tusc-county-man on August 24, 2016 at 8:47am

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

Permalink Reply by Soundcraft on August 31, 2016 at 6:01am

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.   

Permalink Reply by Tusc-county-man on August 31, 2016 at 7:37am

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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