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Johnson Oil Company leased 640 acres of Section 18 from Farmer Ace with a 1/8 LOR. In order to drill a prospect in Section 18

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Johnson Oil Company leased 640 acres of Section 18 from Farmer Ace with a 1/8 LOR. In order to drill a prospect in Section 18 (spacing unit of 640 acres - all of Sec 18). Johnson farms-out to Smith Oil Company, with a 4% ORRI (Overriding Royalty Interest) reserved for the farmor before payout (BPO), and the farmor has an option for a 35% Wi reversion after payout (APO). If the farmor opts into the well APO, they no longer receive the ORRI. Find the BPO and APO working interests and net revenue interests of both parties for a productive well drilled by farmee on the 640 acre spacing unit of Section 18. Assume farmor opts for the WI reversion APO. Submit answers in the Excel Table below. Use decimals, not percentage. | Johnson WI Smith WI Farmer Ace WI Johnson NRI Smith NRI Johnson ORRI Smith ORRI Farmer Ace LOR Farmer Ace ORRI Which company is the farmor? Which company is the farmee? Johnson Oil Company leased 640 acres of Section 18 from Farmer Ace with a 1/8 LOR. In order to drill a prospect in Section 18 (spacing unit of 640 acres - all of Sec 18). Johnson farms-out to Smith Oil Company, with a 4% ORRI (Overriding Royalty Interest) reserved for the farmor before payout (BPO), and the farmor has an option for a 35% Wi reversion after payout (APO). If the farmor opts into the well APO, they no longer receive the ORRI. Find the BPO and APO working interests and net revenue interests of both parties for a productive well drilled by farmee on the 640 acre spacing unit of Section 18. Assume farmor opts for the WI reversion APO. Submit answers in the Excel Table below. Use decimals, not percentage. | Johnson WI Smith WI Farmer Ace WI Johnson NRI Smith NRI Johnson ORRI Smith ORRI Farmer Ace LOR Farmer Ace ORRI Which company is the farmor? Which company is the farmee

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