Can anyone tell me how adding 4 horizontal legs to an existing well works? I mean does it increase production a lot from the original well? Does it mean I would receive royalties from 5 wells? Thanks in advance to all who answer. ARDIS.
Imagine your existing well as an upright standing straw, the current production is from the bottom of the straw. Now the mechanical procedure will be to enter the straw and literally cut out a “window” at some intermediate depth and using flexible tools then exit the window with the drill string and drill out horizontally (or lateral) into the producing zone. This can be repeated several times until the “bird’s-eye” view of the multi-well design looks like a wagon wheel with spokes (lateral wells, sometimes in “offset lateral” or “K-lateral” design) extending from the hub (vertical “host” well). 'nuff said? And yes, you will realize an increase in royalty, as you received royalty on the lease/unit whether there is one well or more.
Thank you for the answer, it helps to understand the legs.
Could you or anyone tell me if I had 120 cum MCF of gas being produced in my well, which is in the Bakken field, would the cum of gas be average or above average for a gas/oil well?
Careful where you put the “M’s”… 120 Mcf x $4/Mcf = $480, but $4/Mcf x 120,000 (120 MMcf) is $480,000. That said, it would be more likely 120 Mcf per day or 120 Mmcf cumulative.
Mcf is thousand cubic feet, not million (Mmcf), and gas is calculated/paid per Mcf and adjusted per 1,000 Btu: “rich” gas of 1.025 Btu x base-rate $4.00/Mcf would be net ___ Mcf x $4.16/Mcf.
Thanks for your answer, I am learning so much about oil and gas and it is quite interesting. Of course it helps to have a producing well!