How To Read A Production Statement -- 39366

The well:

• 39366, drl/A, Grayson Mill, Williston 30-31F XE, Catwalk, 1/24; cum 64K 1/24;

A brand new well.

• stimulated 11/6/2023; test date 1/6/24, middle Bakken, 53 stages; 12,639,270 lbs proppant (a huge frack, both in terms of total proppant, and number of stages); great results;

Since this is a brand new well we can help explain to the reader what an oil company's production statement looks like. I've never done this before. No one has taught me anything about reading production statements and I haven't googled anything on production statements, so some / much of this could be wrong. 

Overview:

The calculations:

Williston 30-31F XE	Size of Drilling Unit	Total bbls January, 2024.	Price	Owner’s Volume (bbls)	Bbls / acre (total bbls / size of unit)	Decimal interest	Volume (column g) x column (c)	My calculations	Company’s	Royalty interest est	Acres est based on RI est
	2560	61,026.68	$70.76	1.83	23.8385	0.00002995	1.83	$129.49	$129.34	0.375	0.2
	2560	61,026.68	$70.77	2.67	23.8385	0.00004368	2.67	$188.96	$188.65	0.375	0.3
	2560	61,026.68	$70.75	0.28	23.8385	0.00000460	0.28	$19.81	$19.86	0.375	0.025
	2560	61,026.68	$70.77	7.16	23.8385	0.00011727	7.16	$506.71	$506.45	0.375	0.8
				11.94				$844.97	$844.30
Comments:	Size of drilling unit: a section line well — four sections.	Total crude oil sold in January, 2024, from this well in bbls.	Price oil was sold at (may vary slightly.	From the company on the production sheet.	My calculation: (column C / column B)	Decimal interest (column G) was determined by the company.	My calculation confirms the company’s calculation.	Royalty at the wellhead; my calculation (column H times column D).	Royalty at the wellhead; the company’s number.	My estimate. 0.375 is 3/16ths.	My estimate based on the estimate in column K.

The maps:

The scout ticket and production data:

 ********************************
The Reader's Production Statement
For The Above Well

Wow, wow, wow -- a reader whom we will call Tucker just noted a new well on his / her monthly production statement. Tucker has never paid much attention with his / her production statements but with a brand new well, Tucker thought it was a great time to see if I could help him / her with reading / making out the production statement. So, this weekend, I will post some YouTube videos explaining oil production statements. 

This should be fun.

Okay, I've started taping the videos. 

These videos are very amateurish.

I may have a lot of this wrong, and all of this information can be found on the web posted by much more knowledgeable folks and much more professionally. I often use terms incorrectly, and I often round numbers, so take all of this with a grain of salt. I'm simply trying to explain to a reader how to read his/her production statement. 

I'm hoping to provide enough information -- right, wrong, whatever -- to get the reader started. 

Feel free to fact-check and re-run the numbers. 

Again, this is for one reader; it is not for the general audience. If in any way you think this might affect your own minerals, go to other sources for better and more accurate information. 

I think Clip 1 is the worse; I may re-do it.

Clip 2 is of the well itself -- where it's located, etc.

Clip 3 is probably the one the reader is most interested in -- how to calculate the decimal unit and how the decimal unit is useful.

So, here goes.

Clip 1:
Clip 2: There is an error in the spreadsheet that I produced for this video but that error has been corrected in the post and in clip 3 below. It does not matter with regard to what I was posting in Clip 2.


Clip 3: Note only major error in this clip. I stated that the 2560 acre drilling unit was two sections, one mile by two miles. In fact, a 2560-acre drilling unit is four sections, two miles by two miles or one mile by four miles -- both methods giving one four square miles of surface area and four square miles in the drilling unit.