In oil and gas exploration, a working interest owner pays a percentage of the costs associated with a well, including but not limited to cost of leasing, drilling, producing and operating a well or unit including taxes. After royalties are paid, the working interest owner is entitled to his share in production revenues with other working interest owners based on the percentage of working interest owned. These interests can be complex and most times involve seemingly infinite calculations with a thorough understanding of legal documents, i.e. Joint Operating Agreements, Farmouts, Term Assignments and Letter Agreements.
Determining working interest ownership is a skill set often outside the realm of many brokerage firms. TWW is proud to have landmen who have cracked the code on working interest ownership in some of the oldest fields in East Texas and beyond. TWW reporting practices and supporting documentation for Working Interest projects will provide you with all the information you need to confidently proceed into any negotiation.