I have notice some completion reports reclassify wells from oil to gas. I understand the wells have markedly reduced oil productio, What purposed does such reclassification with the state sserve?
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.
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