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Enter your gross tract acres, lease royalty, and the drilling unit size to get your tract and wellbore net revenue interest, along with your net royalty acres. Everything is normalized to the standard one-eighth basis.
Net revenue interest, or NRI, is your decimal share of the revenue a well or a tract produces. For a mineral or royalty owner it comes down to three things: how many acres you have, what royalty your lease carries, and how your tract fits into the drilling spacing unit the well is drilled to. This calculator works the way the industry does, normalizing everything to the standard one-eighth royalty basis so the figures are comparable from one tract to the next.
The chain is short. Your net royalty acres are your gross tract acres times your lease royalty, so a 160 acre tract at a 3/16 (18.75 percent) royalty is 30 net royalty acres. Net mineral acres at one eighth is just that figure times eight, or 240. Your tract interest is your royalty on the one-eighth basis, and your wellbore interest scales the tract interest by how much of the unit your tract makes up. Because a well is drilled to the whole spacing unit, a tract that is half the unit carries half the wellbore interest of the same tract standing alone.
Take a 160 acre tract, leased at 18.75 percent, sitting in a 320 acre drilling unit. Net royalty acres come to 30, and net mineral acres at one eighth come to 240. The tract interest is 0.0234375, and because the tract is half of the 320 acre unit, the wellbore interest is half of that, 0.01171875. Those decimals are what ultimately drive the royalty a well pays you, which is why getting the acreage, royalty, and unit size right matters before you ever talk value. For how that interest turns into a dollar figure, see how mineral rights are valued.
Common Questions
Net revenue interest is your decimal share of the production revenue from a well or a tract. For a mineral and royalty owner it is driven by your acreage, your lease royalty, and how your tract fits into the drilling unit. This calculator expresses it on the standard one-eighth basis used across the industry.
Tract interest is your net revenue interest in the tract itself, normalized to the standard one-eighth basis. Wellbore interest scales that by how much of the drilling spacing unit your tract makes up, since a well is drilled to the whole unit. Wellbore interest equals tract interest times gross tract acres divided by gross DSU acres.
Start with net royalty acres, which is gross tract acres times your royalty. Tract interest is your royalty times one eighth. Wellbore interest is that tract interest times gross tract acres divided by gross DSU acres. For example, a 160 acre tract at a 3/16 royalty in a 320 acre unit gives a tract interest of 0.0234375 and a wellbore interest of 0.01171875.
Net royalty acres are your gross tract acres multiplied by your lease royalty. A 160 acre tract leased at a 3/16 (18.75 percent) royalty is 30 net royalty acres. Net mineral acres at one eighth is simply net royalty acres times eight, so 240 in that example. NRA is the figure buyers and evaluators use to compare and value mineral positions.
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