Q: How is my interest in a well calculated?


    A: A Royalty interest in a well is calculated as follows:

    Step 1: Take the number of net mineral acres that you own within a well’s drilling or spacing unit (example:  if you own an undivided ½ mineral interest in 80 acres, you own 40 net mineral acres)

    Step 2: Divide that number by the total acres in the well’s drilling or spacing unit; and

    Step 3: Multiply this number by the royalty interest stated in your Oil, Natural Gas and Mineral Lease

    Example:  if you own 40 net mineral acres, spacing unit is 640 acres and royalty interest is 1/8, then your royalty interest in the well is (40/640) x 1/8 = 0.0078125