Black Dragon Resource Companies Inc (BDGR)

[localoil]

"Local Oil, what are ORRI's. Thanks"

Royalty Interests = RI
Overriding Royalty Interests = ORRI

ORRI's are typically assigned AFTER the lease was granted, and are not part of the RI which is the royalty paid to the landowner.

Both of those categories are paid out of the gross, ie, they don't pay any of the bills. The effect of having a lot of royalty burden is that it of course lowers the net revenue.

It's not a linear thing. As net revenue drops you have a diminishing pool of money against which to pay the gross costs of production.