ROYALTY CHECK EXAMPLES!

Folks are always wanting to know how much income they can expect to receive from their well. 

Every situation is different.  Every well is different. Prices vary.  Production varies.  Production drops at a different rate for each well. Simply put, you're asking me to predict the future.

Sorry, folks, but my crystal ball is cracked...bad.

BUT, I have a great rear view mirror.

So, I took the first 16 months of production from the Goodrich Crosby 12H, the best well for that long of a period of time as we have in the TMS and I took the production from the EnCana Joe Jackson 4H, a similar aged well with a shortened lateral.

I'm using $90 for the net price of oil and I'm only using the oil production while ignoring the natural gas production...some gas gets sold, some doesn't...just easier to ignore it.  I'm also assuming a royalty pay rate of 20%.

The Crosby had total acreage of 1342.42, while the Jackson had acreage of 1327.56.

So, fairly similar size, drilled and fracked within about a 4 month period of each other, but vastly different check amounts.

If you had 1 mineral acre under each of these wells from day 1, your monthly checks would have been, as follows: