Section 11 10N 8W Vickery 1-11H 31-Jul-13 Cimarex
Hello Don,
My dad (who is not too computer literate) was very recently notified that he is owner/heir of 3/16 of I believe the area above. There are approximately 6- 7 total heirs of an 80 acre area. Does the number of heirs effect payout to each heir?
So bottom line, we're just trying to figure out what the income will be from this. All we know now is the section stuff above (actually Vickery could have been 110?), but he's not sure. But the section, township, range stuff, is spot on, as is Cimarex.
He's wondering if he can plan to purchase a new home in Hawaii!! ahahah
I looked at your spreadsheet, and I am baffled. Not sure how to calculate what it would be. He has 3/16, I know that much. Looks like 46.7 BOPD (on your 5/17/2014) PDF. Plus gas.
Anyways, if you could be so kind so help us in this regard, explaining what this means, we will definitely be grateful. We live in California.
Mike
Hi Mike,
Ha Ha! Tell your dad to not forget the hurricane insurance when he buys that new home in Hawaii. The number of heirs will effect just how many net mineral acres he gets. If there are currently 80 net mineral acres your dad will get 13.33 NMA if there are 6 heirs... 11.4285 NMA with 7 heirs.
Based on the test data from the completion report, the Vickery 1-11H will pay about $55.55 per month per net mineral acre starting out, or about $667 the first year. From there production starts dropping and the 4 year total amount will be about $1,345 per NMA.
Now, I looked at the actual oil production numbers and the well was producing closer to 70 barrels of oil per day the first couple of months. So the payout should be a little better than estimated. The thing to remember is that production drops much slower after the 4th year and royalty checks should continue for years to come. And at some point new wells will be added.
Attached is a copy of the spreadsheet from M Barnes that I use to calculate the estimated payouts.
Hope this helped,
Don
1633-Vickery111H.xlsx (18 KB)
Just wonder if anyone knows about the Betty jean in 8- 7n-6w or how much or when it will pay ?