Recently signed a lease in Garvin County which stated the my Mineral Interest was 0.09375 based on my ownership of 15 acres out of a total of 160 acres. Am I correct in assuming that since the lease was signed with a 1/5 royalty rate, when and if I ever get paid royaties, my Decimal Interest will be 0.01875 (0.09375 x 0.20)?
In Oklahoma, the equation is: net acres/actual spacing acres x royalty x percentage of perforations in your section.
So if you have a vertical well and your acreage is within the spacing unit of 160 acres at 1/5th, you would be correct. 15/160 x .20=.01875. But if the well is a horizontal well spaced at 640 acres and half of the well is in your section and the other half is in another section, the amount would be: 15/640 x .20 x .50=.00234375.
My lease clearly stated the my Mineral Interest was 0.09375 with my nma at 15 acres out of 160 total. I suppose I will not know anything about number of perforations or actual spacing acres until when and if any wells are drilled. Is that correct?
That is correct. Each well has its own spacing and a horizontal well will take months to find out the final answer. They may state that the well is 50/50 planned with another section, but they will run a borehole survey at the end of the drilling and perforations and make a final determination of the exact percentage.
Thank you very much for your help.
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