Our operator is planning on 8 new wells spanning two miles through section 8 and 9. Currently we have two in production on Section 9 only. Is that double the length of a horizontal in one section and if so then is it logical to expect 2x volume or say 1.5 because of mining a larger area assuming minerals are there of course?
Thanks, Jay
In my area, two adjacent 640 acre sections 8&9 are combined & allocated into two narrow pooled units 640 acres each, 1/2 mile wide X 2 miles long (labelled north and south pooled units, or east and west units). Then, long lateral horizontal wellbores 10,176’ long (almost 2 miles) are drilled across sections 8&9, with royalties shared among the 640 acre pooled unit. Long laterals produce more O&G, but the pooled units are larger so royalties are divided among twice as many acres.
You can see your plat map, go to drilling permit, scroll to bottom attachments. Long laterals are usually drilled at different levels, e.g., Wolfcamp A and B.
Is this what you’re asking?
What block? If you dont mind me asking?
I’m trying to understand pooling across sections and whether an operator could acquire an adjacent section really cheap that doesn’t produce much of anything and then pool it with a section that they are leasing and effectively dilute the royalties in the section that actually produces say 95% of the volume between the two by half. I can see where it would be beneficial if both sections produced equally but if the operator owns the non producing section and is pumping everything from the leased section then it seems like a sneaky way of diluting the owners royalty from their producing section. Are they required to measure volume by section to prevent something like that from happening?
Pooling is complicated for sure, lawyers may know your “share & share alike” question. You know you can download the pooling agreement from county records or ask the operator to provide it, to see who owns the pooled acres along with plat.
Just curious, why you perceive adjacent tracts hold unequal minerals?
Production from each well is measured, for the most part, every day. I say for the “most part” not every well is tested for production every day. It is usually tested in sequence depending on how many other wells are in the same formation and Lease.
More of a hypothetical. It could be the other way around also whereby an adjacent tract holds more, less or about the same. Roy, are you in section 8/9 in Reeves County? Phantom Wolfcamp?
No, we’re in Reeves County 15 miles east of you, our two adjoining sections share a long laterals from the same pad, was using your “8 & 9” as an example because adjoining sections aren’t sequentially numbered along the river.
Yes, we’re in Phantom Wolfcamp, first pair of wells drilled Wolfcamp A and B. Operator happy with results of both, put us in the queue for future stacked/staggered wells.
Got it. Thanks for the info. I see now how it will work by looking at the permits on RRC. Sections will be pooled and hopefully volume is good on both.
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