What is a Division Order?
A Division Order is a document that lists a property owner’s decimal interest in a specific well.
Why did I receive a Division Order?
PennEnergy Resources is currently preparing to drill, complete and produce unconventional shale gas wells in your area. Our records indicate that you are the Oil and Gas owner of property included in our production unit.
How do I calculate my Decimal Interest?
The basic calculation for decimal interest is your acres in the unit, divided by the number of total acres in the unit, multiplied by the royalty rate listed in your lease.
(YOUR ACRES/TOTAL UNIT ACRES) X ROYALTY RATE = YOUR DECIMAL INTEREST
You own 5 net acres in the unit, there are 900 total acres in the unit, and the royalty rate listed in your lease is 12.5%
(5 divided by 900) multiplied by 12.5% = your decimal interest
(5/900) X .125 = 0.00069444
Please address correspondence to:
PennEnergy Resources, LLCAttn: Land Administration
1000 Commerce Drive
Park Place One, Suite 400
Pittsburgh, PA 15275