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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on July 31, 2015 at 10:44

Mary, the decimal interest is the royalty share in the well/unit production.  It is calculated by dividing the net mineral acres owned by the total acres in the unit and then multipling by the royalty fraction.  Before you pull any hairs take your ownership interest in acres in Tract 2 and do the math.  Does it come to 0.000052190?

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landownerPermalink Reply by Mary R. C on July 31, 2015 at 10:59

YES, CAN YOU GIVE SOME IDEA OF HOW MUCH THAT IS ON THE MILLIONS REPORTED.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on July 31, 2015 at 11:16

Not without knowing what price the operator is getting for the oil.

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landownerPermalink Reply by Mary R. C on July 31, 2015 at 11:22

THANKS FOR SAVING MY HAIR, LOL

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 2, 2015 at 3:50

Mary, your interest in the well is quite small.  Please be very conservative in your expectations of royalty income.  The first check will be for the production from first day to whenever the initial royalty checks are forwarded.  That will be for several months of the highest production.  After that the checks will cover a single month of production and production will generally decline each month thereafter. I hope you get enough to buy a tank of gas or a nice meal out.

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landownerPermalink Reply by Mary R. C on August 2, 2015 at 10:25

Skip, our family started out with 125 acres on this land, kept it all these years, find out some family memebers sold some, left 88 acres, sold some more down to 54 acres, and its so many of us our percentage is so low.
Their is a report that a company bought the cruel for 23,617,132, now am I reading this wrong this is millions, correct. Will this be the amount our percentage be based on.
Only God knows whats going on, the division papers have us under track 2 under somebody else name and not our family name, Again I thank you for your help.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 2, 2015 at 10:54

In 75 days of production, March thru May, the well reported production of 80,591 barrels of oil. A little over 4 barrels of that are yours.  So 4 times whatever Encana was getting for a barrel of oil during that period less deductions is what will be your first check. 

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