We recently inherited mineral interests and still learning about Directional Drilling.
I recently received a new Division Order that includes directional drilling and I am unfamiliar with how to calculated the new interest or at least confirm with what Diamondback has calculated. I am just trying to make sure everything is correct before signing. I have had experience with companies coming back and withholding due to incorrect calculations. I really don’t want that happening again. Different company than this situation…but still…
Is there a formula? I know how to read legal descriptions and I have legal documents showing NPFI etc. and I can confirm correct decimal points. They included the As-Drilled Plat for Bullfrog 47-Howard County, Tx. Who can help me or resources available to the “average jane” looking for calculations on directional/lateral drilling etc.? Just wanting to confirm numbers.
As per Tennisdaze’s response to a similar question as yours.
“Go to the RRC website - Online Research Queries - Completion Query. Enter you API number for the completion report. Look at the Completion Report and find the length of the productive lateral wellbore from first takepoint (FTP) to last takepoint (LTP). This is the as-drilled plat, and will differ from the permit plat. The plat will show the various tracts and how many feet of the productive lateral are on each tract. For an allocation well, the formula is based on the number of feet of productive lateral on your tract divided by the total number of feet of productive lateral. Then you apply your fractional mineral interest and your royalty rate. Sometimes the final plat is missing some data and you may have to ask the operator for a plat with the exact tract lengths.”
I hope this helps you find your answer.
mk
