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Oil & Gas ProPermalink Reply by GOILOGY on April 22, 2009 at 10:00

Smaller 320 acre units are allowed if the operator can prove to the Office of Conservation that there is a valid geological reason for for the downspacing (however, keep in mind that the OOC are there to protect the mineral owners interest and LA's interest = how will the downspacing affect rolyalty revenue streams to all represented parties).
Eventually all of the HSVLS wells will be dowspaced to 320's, 160's, & eventually to 80's. Most operators are currently drilling verticals on 640's to hold acerage (rightfully so with economic conditions being what they are). Later when the market conditions are better the 640 acre units will be infilled with as much as 7 addtional increased density wells (8 wells per 640 = 80 acre units). This will not occur across the board, but it will be the norm in the future.

Hope that helps.
-G

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landownerPermalink Reply by Catfish on April 23, 2009 at 3:56

So if productive shale is only in part of a section and can be proven, a smaller unit could be allowed?
Thanks

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Oil & Gas ProPermalink Reply by GOILOGY on April 23, 2009 at 8:53

Correct. No well that has or will been drilled in the play will drain a 640 unit anyway. That is why they all will all eventually be downspaced.

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Oil & Gas ProPermalink Reply by The_Baron on April 24, 2009 at 5:10

don't confuse spacing with unit size.

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Oil & Gas ProPermalink Reply by The_Baron on April 24, 2009 at 5:11

As units are infilled the unit size won't change.

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Oil & Gas ProPermalink Reply by GOILOGY on April 27, 2009 at 9:01

You are correct. I was refering to downspacing to indicate relative drainage radiuses and not unit size, sorry if I was misleading. However the orginal question was can a HSVLS well be drilled/produced on a unit smaller then a 640. and the ansewer is yes they can if the operator seeks it and it is approved by the state.

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