Replies to This Discussion

Permalink Reply by Aubrey C. Sanders, Jr. on August 22, 2010 at 15:29

Les, an allowable is established for a unit based upon well tests for the initial well in unit. Later on there may be alternate unit well (s) may be drilled. In almost all cases, if not all, the unit allowable is greater than the initial well can physically produce. At that point operator may request permission to drill an alternate unit well and he can produce the unit allowable from original well and any alternate well(S). Production from all wells is reported to Office of Conservation as if all production came from original well. However, the operator keeps individual tally of production from each well and this is the basis they use to pay landowners.

• ▶ Reply

Permalink Reply by Les Bamburg on August 22, 2010 at 17:41

Aubrey, yes I am very familiar with alternate wells. That goes back to my days as a reservoir engineer for the Arkana & Springhill Fields. As you know the individual well production would likely be an allocation of unit measured production based on occasional well tests.

• ▶ Reply

• ‹ Previous
• 1
• 2
• Next ›
• Page