Horizontal Drilling Question

When you have a horizontal well that shows 1H and 2H each has a production amount listed for them are the essentially the same well or considered separate? Do you get paid for the total production that both create monthly?

Also curious how common it is for the operator to drill down to different levels essentially creating new wells that you get paid on? If that happens is there a common timeline that they use to go after different layers of oil when using horizontal wells?

M.S.- The 1H & 2H designations represent different wellbores. They may or may not be in the same reservoir. And yes, there are areas where different wells within a spacing unit are producing from different formations. You will get paid revenue from each well separately as long as your interests are in the spacing unit that the wells are producing from.

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I see most wells including the ones I am referring to are putting out between 1300-2000 BOPD. I know the horizontal wells tapper off fairly quickly but does that typically last for the 1st a couple of years and what do they normally level off to for the long haul?

M.S- those numbers a very short lived. You can expect 80% decline in the first year, then the decline is more gradual. All wells are different so nobody knows how long they will last. Just like a coke, the more straws in the reservoir the quicker the reserves (coke) depletes.

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Search for recent threads on this message board for depletion curves for horizontals, some good recent discussion.

My lease was combined in a 640 acre pooled unit, the Declaration of Pooled Unit was recorded including a plat that illustrates the sections and boundaries, very informative. You can download such pooled unit, or ask the lessee to email one for free. The plat will show whether 1H and 2H are in your pool, or two different pooled units.

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