The math for an oil well is very simple. Essentially, you get a percentage of the actual oil that is coming out of the ground every day. The way the oil is divided up is as follows.
O.I.A.L. Oil, LLP will distribute 100% of its share
of the oil revenues to the 25 equal shares (4% per
spot). Investment is $100,000 per spot in the
limited partnership.
Doing the math for you...for every 100 barrels of oil
that comes out of the ground, 1.37 barrels are
assigned to EACH of the 25 spots in the limited partnership.
Of course there won't be a truck showing up at your doorstep every day with your share of the oil. O.I.A.L. Oil, Inc. as the general partner of O.I.A.L. Oil, LLP will sell and collect the funds for your share of the oil and send you a monthly check. How big will the checks be? That depends on IF oil is found and HOW MUCH oil comes out of the ground every day.
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FAIR WARNING:
Investing in an Oil Drilling Partnership is extremely risky. Due to the complex nature of the drilling process as well as the unknown factors underneath the ground, it is entirely possible for any given well to come up dry or prove uneconomical to produce.
Because of the high risk nature of the investment, the potential rewards can be very high. That's why the LLP is getting 49% of the Working Interest in the Lease for Wells #1 & #2. Since there are only 25 spots in the LLP, each spot gets 4% of the LLP's Working Interest.