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How to Calculate Net Revenue vs. Working Interest 

Here’s a quick, handy guide to calculating the net revenue for your oil and gas investments and specific net revenue interest versus working interest in a well. (Note: You don’t need to know all of this to invest with EnergyFunders, but this is how you would calculate it.) You can choose a writer online to ask him to write my essay on revenue.

oil drilling

First, though, here’s how we defined net revenue interest or NRI for oil and gas investments in our Oil and Gas Glossary:

Net Revenue Interest (NRI) – A net revenue interest (NRI) is the total revenue interest that a party owns in an oil and gas lease, well or drilling unit. For example, if ABC Oil Co. owns 100% working interest and Joe Landowner is entitled to a 12.5% royalty, then ABC Oil’s NRI is 87.5% and Joe Landowner’s NRI is 12.5%. If ABC Oil owns 50% working interest and Joe Landowner still owns 12.5% royalty, ABC Oil’s NRI is 43.75% (or, 50% reduced proportionately by Joe Landowner’s 12.5% royalty). Also remember paper writing services have experts to write on special topics.

Lease Well or Unit Well?

This is important to know. Is the well part of a drilling unit or do you have a stand-alone lease that is big enough not to need a drilling unit? A Paper Writing Service can write best essays on revenue for you.

There’s also the chance that you own the minerals outright, but this question is basically the same if you do. The key question is are you a part of a drilling unit or do you control enough acres either through leasing them or owning them to drill a well without being a part of a drilling unit? 

For the purposes of this post, we’re assuming that you aren’t trying to calculate your net revenue interest for oil and gas investments as a landowner. This is a post about oil and gas net revenue for the working interest owner. However, A good essay writer have the quaity to write essays on revenue.

How Much Working Interest Do You Own?

Once you’ve figured out if you have a lease well or a unit well, you should next be able to figure out how much working interest you own in the well.

Working Interest – A working interest is ownership in the lease itself, including the right to drill and produce oil and/or gas. Working interest owners fully participate in the profits of a successful well and pay for all costs of drilling and operating wells, including paying royalty owners. If you are newbie you can also pay for essay to get essay written on revenue.

That’s somewhat abstract. Let’s make it real-world applicable by going straight to the following examples.