Would there ever be a possibility of two separate spacing units overlapping to create a new 1280 unit? As an example, two current stand up 1280 spacing units 16 and 21 as well as 28 and 33. Could a new spacing unit be established for 21 and 28 or lay down with adjacent sections?
Also is there potential for individual 640's when allready being tied into a 1280?
K J, I would say it almost certainly will happen. Where operators have two 1280 acre spacings adjacent to each other there have already been formed to 2560 spacings so they could drill on the section line or void the setback from the section line regulations, between them. In time adjacent spacings with different operators will form joint ventures so they can do the same. There have been 1920 acre spacing units where the operator had 3 sections and drill from the center section going both ways. I thought the 1920 acre spacing was a good cpmpromise between the operators desire to hold unproducing acres and the mineral owner deserving a leaner spacing for better royalty. I believe that in future that there will be more laterals drilled in the 4,500 to 5,000 foot range in areas with lower field pressure because they will be more cost effective and efficient on pump. I think they drill, have drilled, alot of poor 10,000 foot lateral wells just to get the land held for future drilling.
Thanks R W, good answer.
Hi - we have 320 acres(the NE160 and the SE160) leased to a Houston oil company with one well on a 640 spacing and two wells on a laydown 1920 spacing. So now the company has asked for an order to create a new 3200 acre spacing that would would exclude our 320 and our southern neighbors 320. I think the idea is to drill down the section lines but it is my understanding that if this is approved we would be out of luck on any royalities even though we have royalities coming from the laydown 1920's.My question is about the corelative rights associated with the 1920's and any other arguments that we can present to the commission and/or the company.
Your thoughts are appreciated!