Acreage Requirements for Oil and Gas Company

If a section is in the process of being leased up by a couple of dominant players, what would it take for a competing O&G company to get into the play? For example, if Shell and Comstock had accquired 60 percent of a 640 acre section, and you had a 70 acre parcel in that same section, would another company want to move on it for profitable production, or, is there a problem in this example being that majority interests are already leased in that section.
Shelby

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Permalink Reply by shelby on July 23, 2008 at 18:03
LesB,
That makes more sense to me. So we could have more than one operator per. section, but, the profits (and expense) would be directly proportional to the net acreage they own in a unit?
Shelby
Permalink Reply by Les Bamburg on July 23, 2008 at 18:23
Shelby, you are correct except it is more than one "company" per section (with one operator).
Permalink Reply by Two Dogs, Pirate on July 23, 2008 at 5:45
Other companys buy in to become a working interest partner. They pay their share of costs and get their share of profit. Then pay you your share of royalty.

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