land_ownership · ownership
Working Interest Share
WI Owner's Share = WI × Gross Amount
click formula to derive ↑
Inputs
fraction
$
Description
Computes a working interest owner's proportional share of a gross dollar amount — applicable to both AFE cost allocation and gross (pre-royalty-burden) revenue entitlement, since a working interest owner bears costs at the same fraction it would receive unburdened revenue.
Variables
| Symbol | Unit | Description |
|---|---|---|
| WI_share | $ | Working Interest Share |
| WI | fraction | Working interest fraction, expressed relative to the full (100%, or '8/8') leasehold. |
| G | $ | A gross dollar figure to allocate by working interest — either an AFE cost to be funded, or gross (pre-royalty-burden) production revenue. |
Assumptions
- The working interest fraction is expressed relative to a 100% (8/8) leasehold base, consistent with Net Revenue Interest's convention.
- The gross amount entered is already the correct total to be allocated (full AFE cost, or full gross production revenue) — this calculator does not derive that total.
Limitations
- When used for revenue, this is the pre-royalty-burden amount only, not what the owner actually nets — see Net Revenue Interest for the after-royalty figure.
- Does not model non-consent penalties or other AFE participation elections found in a joint operating agreement (JOA); assumes full, standard proportional participation.
Use Cases
- → AFE cost allocation: Compute a working interest owner's dollar share of an AFE before requesting or sending payment.
- → Pre-royalty revenue entitlement: Compute the gross (pre-royalty-burden) revenue entitlement as an intermediate step before applying Net Revenue Interest.
Related Calculations
Region Notes
General (U.S. onshore)
Joint operating agreements (JOAs) typically require working interest owners to fund their proportional AFE share in advance of operations, with non-consent or penalty provisions for owners who decline to participate in a specific well — always confirm actual participation elections against the governing JOA.
References
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