Ms. Kyle owns some mineral rights in Texas that she leases to Seagull Oil Company, reserving a…
Ms. Kyle owns some mineral rights in Texas that she leases to Seagull Oil Company, reserving a 1/8 royalty interest. During 2011, Seagull Oil made the following assignments:
a. To Mr. Hall, an ORI of 1/6
b. To Mr. Clark, a production payment interest of 10,000 barrels of oil to be paid out of 1/5 of the working interest’s share of production
c. To Ms. Wilson, a joint working interest of 40% after giving consideration to the above assignments
REQUIRED: a. Prepare the decimals to be used in the division order.
b. Assuming production of 12,000 (gross) barrels of oil, calculate the number of barrels each owner would receive.