Royalty Calculation

Does anyone know how to check the production of a well? I used the royalty calculator with info from sonlite on well information. The royalty check didn't come close to my calculation.

Some of my info must be wrong.

I don't get on the discussion board very often so this info has probably been discussed before.

Thanks,

Dennis

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Permalink Reply by The_Baron on January 11, 2012 at 6:22

Sonris reports in MCF.

the equation is

total prod for month in MCF * (net acres/unit acres) * royalty% * price/mcf

You will have deductions depending on your lease and for severance taxes

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Permalink Reply by Dennis on January 11, 2012 at 6:44

Thank You,

Is the well information from sonris the best place to get true well production? Also, is the price for Nat Gas reported in the market based on MCF or MMCF?

Thanks again,

Dennis

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