7. Mr. Duke owns some mineral rights in Texas that he leases to Seagull Oil Company, reserving a 1/8

royalty interest. During 2014, Seagull Oil made the following assignments:

a. To Mr. Hall, an ORI of 1/6.

b. To Mr. Evans, a production payment interest of 10,000 barrels of oil to be paid out of 1/5 of the

working interests share of production.

c. To Ms. Wilson, a joint working interest of 40% after giving consideration to the above

assignments.

Questions:

A. Calculate the decimals to be used in the division order.

B. Assuming production of 12,000 (gross) barrels of oil, calculate the number of barrels each owner

would receive.