Rough Royalty Estimate

If on your division order its says you own .0002 of the unit, and the unit is saying making 1,000,000 per month, what kind of an estimate would you expect for your monthly check. (Not including decline etc)

 

Thanks

Views: 71

▶ Reply to This

Replies to This Discussion


landownerPermalink 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.
Permalink Reply by Silver Doller Jim West on April 5, 2011 at 10:36
$1,000,000 in gross sales, oil & gas

landownerPermalink 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

landownerPermalink 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

RSS

© 2026   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service