I’m receiving royalties from 10 old oil wells drawing from two shallow oil pools. They’re shallow, vertical wells that are still producing, just not very much. They’re located on two sections, and no more wells can be put on these sections. A new oil pool has been discovered further below these other pools. How feasible is it that these old wells might be worked over and drilled deeper to access this new oil pool, and take advantage of the existing well locations, permits, etc?
It depends… Usually old wells are used for the shallow wells and continue in use as they do not want to lose the royalties from the producing wells.
For new reservoirs, most operators like to drill new wells as they may need large casing diameters for the greater depths and pressures. They may use pipe with different specs and cement that matches the deeper conditions. If the new horizons need horizontal wells, then that is especially needed.