Tag: net revenue interest

This is the percent of revenue that the working interest holders keep after paying the royalties to the owners of the mineral rights and all other non-operating interests. In the past it was typical for the owner of the mineral rights to keep a one eighth, or 12.5% Net Revenue Interest. This meant the holders of 100% of the working interest had an 87.5% Net Revenue Interest. With the current high price of oil the owners of the mineral rights are able to keep a higher percentage than in the past and as a result an 82.5% to 80% Net Revenue Interest is much more common. I would look to avoid any companies that have less than 80% NRI on their oil leases.

Micro-Cap Review Article – Performing Due Diligence on a Micro-Cap Oil & Gas Company

This is a reprint of the article “Performing Due Diligence on a Micro-Cap Oil & Gas Company” written by Erik Nelson, President of Coral Capital Partners, Inc. that was published in the Fall, 2011 edition of Micro-Cap Review Magazine. It takes a look at some of the essential items to consider when evaluating a micro-cap oil and gas company as a potential investment. It is an excellent primer on understanding the various terms and their definitions when looking at a potential oil and gas investment. This is the 2nd article authored by Erik Nelson to be published in Micro-Cap Review Magazine, and the 1st through Coral Capital Partners.