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How to calculate net revenue interest. Owns 100 working interest and joe landowner is entitled to a 12 5 royalty then abc oil s nri is 87 5 and joe landowner s nri is 12 5. Here s the basic formula for calculating the net revenue interest or nri for working interest owners. Net revenue interest calculation. Their interest is what it is.
Net revenue interest nri a net revenue interest nri is the total revenue interest that a party owns in an oil and gas lease well or drilling unit. To get net revenue interest for each entity that owns a share of working interest divide their working interest by 82. The net interest income formula is used to calculate the amount of interest income that is left after covering interest expenses. For example if abc oil co.
Banks earn interest through loans mortgages and other similar interest earning products.
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