Landmen and other land professionals use many different formulas to calculate interests in an oil and gas lease, including royalty payments, bonus payments, delay rentals, undivided mineral interests, working interests, net revenue interests, gross acres, and net acres.
The 10-minute videos in this tutorial cover all of the calculations done on the leasing side of the oil and gas industry. Alyce Hoge walks you through, step by step, each of the formulas that a landman or land professional must know to fully appreciate the impact of leasing on the overall success of an oil and gas company.
- Calculating Beneficial Interest
- Calculating Gross vs Net Acres
- Calculating Net Revenue Interest and Working Interest in an Oil & Gas Lease
- Converting Royalty Fractions to Decimals
- The Money Decimal
- Calculating the Undivided Interest – Same Royalty
- Calculating Undivided Interests – Different Royalties
- Calculating the Undivided Interest in a Unit
- The Duhig Rule
- The Pugh Clause
- Federal Leasing I
- Federal Leasing II