Replies to This Discussion

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on July 30, 2009 at 13:45

olddog. Which royalty calculator did you use.?

Permalink Reply by olddog573 on July 30, 2009 at 13:48

Spend your royalty money wisely

Permalink Reply by olddog573 on July 30, 2009 at 13:49

made it on excel.

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on July 30, 2009 at 13:56

Cool. And thanks for sharing. Keith should make it a permanent element of the site. The same variables plugged into a popular on-line calculator would have given a royalty figure of $5,317 in the first year for a 10MM well and $7,976 for a 15MM. A 67% differential. The on-line calculators just aren't configured to account for the HS decline.

Permalink Reply by olddog573 on July 30, 2009 at 13:55

i have a problem with my formula. need to work on it.

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on July 30, 2009 at 14:02

If you can work the kinks out, it would be a great feature to have on the site.

landownerPermalink Reply by Keith Mauck (Site Publisher) on September 4, 2009 at 3:14

This is something I have been trying to figure out how to do - if you guys can give me an accurate formula - it will help me get it going...

Permalink Reply by olddog573 on July 30, 2009 at 14:04

I think i fixed the problem with the figures. The numbers are close. I'm not a math wizard but they are close enough for me.

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on July 30, 2009 at 14:06

Your figures fall within the range I would expect.

Permalink Reply by Gambler on July 31, 2009 at 16:32

So if i read this right you are saying in your first example the first year would produce a total royalty of $5332.00 for one acre? And if that is what you are saying all you would have to do is multiply that by the amount of acres that you have?

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 1, 2009 at 1:16

Since old dog has recalculated the royalty estimation in this discussion topic post, I'll change my comment above. Your figures are close to what most of the on-line calculators would give. Therefore, I believe it is high by ~67%.

Permalink Reply by olddog573 on August 1, 2009 at 13:23

Skip,

High by ~ 67% ? What do you mean? When I compare the result of 1 acre in 640 acre section at 25% royalty on 10MM/day well in the online calculator to the result in my spreadsheet, the spreadsheet is high by $15 the first year, is this what you mean? For each following year, I subtract 85% and so on for yearly figures. I show my decline as starting the second year, should I subtract the 85% from the first year?

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