Replies to This Discussion

Permalink Reply by adubu on April 5, 2011 at 3:13

if unit is making only 1 mmcf month then gross is only $4,000 at $4 NG which is a very poor marginal well so your royalty check is .0002 X 4000 = 80 cents you would not get a check except annually 12 X .8= $9.60------ If you are saying well makes 1,000,000 mcf for month  then that's 1 Bcf total= $4 million gross the your check is $800/ month. How that's a great well with avg 33.33 mmcfd production---- you have to clarify well making 1,000,000 WHAT in one month.

• ▶ Reply

Permalink Reply by Silver Doller Jim West on April 5, 2011 at 10:36

$1,000,000 in gross sales, oil & gas

• ▶ Reply

Permalink Reply by adubu on April 6, 2011 at 1:13

Silver Dollar-- then simple 1000000 X 0.0002= $ 200 - taxes and other deductions per lease agreement. Your net check would be about $185/month

• ▶ Reply

Permalink Reply by adubu on April 5, 2011 at 7:39

Silver Dollar JW--- forgot to say your check would be the above gross minus severance taxes and others deductions as per your lease agreement= net

• ▶ Reply