If there is a horizontal well that is producing in the same section I have leased?

If the horizontal well is drilled into the same section I have leased and is producing, shouldn't there be a payout? Doesn't payout go to all owners in that section? Just not sure, cause there seems to be 1 drilled into that section, but I havn't seen any revenue from that company.


A horizontal well could be drilled near the border of one section but be producing from a different section. Is the well bore in your section? Are you certain the well is completed? There are a lot of drilled uncompleted wells out there right now.

Thanks for the reply. The well was drilled in another section but has a horizontal that goes well into the section I am in (more than a quarter of the way into). It was completed, and shows it had production for at least the last 1.5 years.

That certainly warrants investigation. I would check with the Department of Natural Resources to determine the spacing parameters.

Thank you!

I think I got it figured out. The attached document might help anyone else that might run into a similar question.

Thanks for the replies!!

418-SSCOGCCpresentationevolutionofspacingandpooling.pdf (2.4 MB)