Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on July 30, 2009 at 13:45

olddog. Which royalty calculator did you use.?

Permalink Reply by olddog573 on July 30, 2009 at 13:48

Spend your royalty money wisely

Permalink Reply by olddog573 on July 30, 2009 at 13:49

made it on excel.

Permalink Reply by Skip Peel - Mineral Consultant on July 30, 2009 at 13:56

Cool. And thanks for sharing. Keith should make it a permanent element of the site. The same variables plugged into a popular on-line calculator would have given a royalty figure of $5,317 in the first year for a 10MM well and $7,976 for a 15MM. A 67% differential. The on-line calculators just aren't configured to account for the HS decline.

Permalink Reply by olddog573 on July 30, 2009 at 13:55

i have a problem with my formula. need to work on it.

Permalink Reply by Skip Peel - Mineral Consultant on July 30, 2009 at 14:02

If you can work the kinks out, it would be a great feature to have on the site.

Permalink Reply by Keith Mauck (Site Publisher) on September 4, 2009 at 3:14

This is something I have been trying to figure out how to do - if you guys can give me an accurate formula - it will help me get it going...

Permalink Reply by olddog573 on July 30, 2009 at 14:04

I think i fixed the problem with the figures. The numbers are close. I'm not a math wizard but they are close enough for me.

Permalink Reply by Skip Peel - Mineral Consultant on July 30, 2009 at 14:06

Your figures fall within the range I would expect.

Permalink Reply by Gambler on July 31, 2009 at 16:32

So if i read this right you are saying in your first example the first year would produce a total royalty of $5332.00 for one acre? And if that is what you are saying all you would have to do is multiply that by the amount of acres that you have?

Permalink Reply by Skip Peel - Mineral Consultant on August 1, 2009 at 1:16

Since old dog has recalculated the royalty estimation in this discussion topic post, I'll change my comment above. Your figures are close to what most of the on-line calculators would give. Therefore, I believe it is high by ~67%.

Permalink Reply by olddog573 on August 1, 2009 at 13:23

Skip,

High by ~ 67% ? What do you mean? When I compare the result of 1 acre in 640 acre section at 25% royalty on 10MM/day well in the online calculator to the result in my spreadsheet, the spreadsheet is high by $15 the first year, is this what you mean? For each following year, I subtract 85% and so on for yearly figures. I show my decline as starting the second year, should I subtract the 85% from the first year?

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