Payout Analysis and Calculation

Correct payment of proceeds from oil and gas sales to royalty and working interest owners is frequently affected by payout status. Determining when Payout has occurred based on complex calculations, formulas and JOA specifications can be overwhelming. This one-day seminar focuses on calculating payouts, analyzing payout conditions, reporting payout and determining the effects of DD&A, Farmouts, Non-Consents among other conditions. COPAS Accounting Guideline AG-13 “Accounting for Farmouts/Farmins, Net Profits Interests, Carried Interests” is one of the materials used.

Who Should Attend:

Joint Interest Accountants who are responsible for payout calculation and reporting. Revenue Accountants whose information feeds the revenue side of payout. Division Order Accountants who are responsible for changing and creating DOI’s. IT personnel who support each of these areas

Pre-requisites: Understanding of Oil and Gas terminology, basic Oil and Gas business and operational processes including joint interest accounting and revenue accounting.

Upon Completion of this Program, Participants will be Able to:

• Understand how payout is calculated

• Understand how DD&A, Farmouts and Retroactive Adjustments affect Payout

• Understand how Payout is reported

• Understand JOA provisions regarding Payout

• Understand how Non-Consent affects Payout

Key Topics and Objectives:

Types of Payout

Reasons for Payout

Penalty Percentages

Time Based Percentages and Calculations

Payout Calculation

JOA Considerations: Non-consent, Operator Replacement Issues and Other

Assigned Interest Payout

Carried Interest Payout

Lease Operating Statement Considerations

Confirming/Disputing Payout Balances

Quality programs – offered on-site and adapted for your company. Contact Jim Hoffman at 214.763.9644 or via email at jhoffman@pdi.org. Visit us online at www.pdi.org