Sherry Robinson and Alyce Hoge have teamed up and are working with Midland College and the Professional Development Center to include a six month division order certificate program. Alyce will teach 5 of the 6 modules. Sherry Robinson teaches Module 4, Oil and Gas Calculations.
See the Oil and Gas Calculations description as described for Module 4:
We are going to learn oil and gas calculations used in division orders. You need to know excel. We will have separate courses, Beginner and Intermediate to enable someone that has the experience and would like to review harder exercises. Intermediate will need to know how to calculate leasehold net, royalty and override calculations, and work with excel. Testing will be separate for the beginner and intermediate, the student will need to advise their qualification before testing, “B” or “I”
Beginner and Intermediate we will learn terminology of oil & gas and the history of royalty. We will start off the first week drilling a well in Texas. This course is designed to help you ease into the formulas. We will understand the relationship between the mineral owner before they lease. We will examine the structure of a title opinion, and the formula for calculating an interest in a well for revenue payments. These exercises start off very easy and you are given the answers to the problems in a power point presentation. Excel exercise to be submitted for part of your grade.
Beginner: we will drill a well in Oklahoma and learn about the Blanchard decision and Senate Bill 168. You will do more calculation exercises, separating out the 1/8th royalty from the excess royalty. This payment is still being practiced in Arkansas. You will learn how to calculate a Proportionate Production Interest or PPI. The exercises will have the same royalty owners and working interest owners that we had in Texas, but the well is now in Oklahoma with different acreage in our leases. Doing the calculation exercises in a repetitive manner helps you learn.
We will drill a well in Oklahoma and learn about the Blanchard decision and Senate Bill 168. You will learn how to calculate a Proportionate Production Interest or PPI. Proportionate Production Interest (PPI) exercises in Oklahoma. Problem solving and spreadsheet building in excel.
Beginner and Intermediate We are crossing back into Texas to drill our wells. These exercises will have one of our partners farming out their working interest, reserving an override and backing in after payout. The same partner will go non-consent and you will learn the formula for crediting non-consent to the consenting owners. We are going to work these problems in excel, using spreadsheets that have been designed for the wells. You will change the spreadsheets to accommodate the farm-out and non-consent scenarios. We will discuss gas balancing and how it can affect your working interest decimal. Review different styles of title opinions, how the Joint Operating Agreement can affect division orders. You will submit your spreadsheet to the instructor.
Beginner: We are going to use an Oklahoma division order title opinion and read the leases and conveyances in the back of the opinion to chain title. You will insert the information in an excel spreadsheet and submit for part of your final grade. You will study the prior 3 weeks to take your final exam. You have done multiple calculation exercises the first 3 weeks, you will be familiar with royalty, override calculations and you will have learned the difference between leasehold and net revenue for the working interest.
We will cover some differences of wells in the Appalachia region, specifically Pennsylvania.
Intermediate: You will prepare a spreadsheet with multiple working interest owners, and override owners. The spreadsheet will be part of your final grade.