I have noticed some completion reports reclassify wells from oil to gas. I understand the wells have markedly reduced oil production. What purpose does such reclassification with the state serve?
You don’t mention which State you are referring to, but in Texas reclassifying a well from oil to gas (which is based on the gas to oil ratio of its production) can allow the operator to qualify it as a “High Cost Tight Gas” well and thereby receive relief from all or part of the normal State severance tax.
This topic was automatically closed after 90 days. New replies are no longer allowed.