Oil well payout & cash flow calculator · all numbers are estimates
You fund the full well cost for your working interest; the sponsor is carried through drilling and retains its percentage of that working interest from first production. Your revenue interest = working interest × (1 − sponsor carry) × (1 − royalty). Taxes apply to your net revenue; you and the sponsor each pay operating costs on your own shares. Production declines monthly; the well is shut in when monthly cash flow turns negative. Estimates only — not an offer to invest.