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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on February 7, 2011 at 12:22

The basic math of all calculators is elementary and pretty much fool-proof.  The unknown variable is what you don't see or get to input, decline rate.  Only the author of the formula utilized in the calculator knows what that variable is.  And no royalty calculator that I have seen states the decline rate utilized.  Keith might be able to shed some light on the calculator that is included on his Shalebiz website.

 

http://www.shalebiz.com/pages.php?page=6

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Permalink Reply by BirdDawg, plain ole' idiot on February 7, 2011 at 17:38

Calculator went up in smoke when I entered "quiet a bit" for decline. 

And then I devide quiet a bit by pi and I ended up with a Chinese abacus.

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Permalink Reply by Linda Whatley on February 8, 2011 at 3:21

Thanks for my morning laugh BirdDawg........  that was funny!

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landownerPermalink Reply by Keith Mauck (Site Publisher) on February 8, 2011 at 3:51

Correct. The calculator on shalebiz.com does not account for decline rates.

There have been some good discussions on this site regarding decline rates and we had one member put together a snazzy excel spreadsheet that utilized some hypothetical decline rates. I'll see if I can dig that up.

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landownerPermalink Reply by DJG on February 8, 2011 at 4:50

Keith,

 

I'll dig that up on my computer and post that Excel sheet up on the site later this afternoon.   

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landownerPermalink Reply by Keith Mauck (Site Publisher) on February 8, 2011 at 7:18

great, thanks!

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Oil & Gas ProPermalink Reply by Johnnie Joe on February 8, 2011 at 9:21

Here's a cool one.  You can add re-fracks or curve your decline based on wells around you.

Attachments:

• Royalty Estimator.xls, 36 KB

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landownerPermalink Reply by JeffNParis on February 8, 2011 at 10:39

Keith...I've used a spreadsheet shared on this site - maybe the one you're writing about - and according to what I've heard folks have received, it's close.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on February 8, 2011 at 10:48

Jeff, is it possible to select between two decline rates in a spreadsheet such as the one you mention.  The utilization of restricted choke settings is spreading and will significantly alter the decline.  Wells on tighter chokes may have first year declines closer to 50% than to 80%.

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landownerPermalink Reply by JeffNParis on February 8, 2011 at 10:56

I don't think so Skip. Check your e-mail...i just sent it to you.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on February 8, 2011 at 11:10

Thanks, Jeff.

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Permalink Reply by Likeme on February 8, 2011 at 11:04

Here is a royalty calculator I designed in Open Office spreadsheet for my neighborhood.  I converted it to Excel and though some things may not line up right (like the instructions) it should function.  You input 5 values to get your monthly royalty amount.  Then it has sheets to keep up with production and so forth.  I use this just to check against Petrohawk's amount.

Attachments:

• Gas Royalty Calculator.xls, 13 KB

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