Can anyone tell me how adding 4 horizontal leggs to an existing well works? I mean does it increase production a lot from the original well? Does it mean i would recieve royalties from 5 wells ? Thanks in advance to all who answer ARDIS
Imagine your existing well as an up-right standing straw, the current production is from the bottom of the straw. Now the mechanical procedure will be to enter the straw and literally cutout 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 time until the “bird’s-eye” view of the multi-well design looks like a wagon wheel with spokes(lateral wells, sometimes in “off-set 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.
Thnak you for the answer, it helps to understand the legs.--
Could you or anyone tell me if I had 120 cum MCF of gas bein 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?
Carefull where you put the "M's" ... 120 Mcf x $4/Mcf = $480, but $4/Mcf x 120,000 (120 MMcf) is $480,00, 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!