ALLOCATION OF PRODUCTION IN LA CROSS UNIT LATERAL WELLS: PERFORATION LETTER

As more members become recipients of royalty based on the linear feet of perforated lateral within their unit from Cross Unit Lateral Wells (HC), questions arise about the means by which production is allocated to their unit.  The following is the best example I have run across to date to illustrate how this is reported.  The first link is the "perforation letter" from  Brammer Engineering on behalf of the operator to the state (in this case MRD Operating).  The second link is to the Permit To Drill which contains the well plat showing the horizontal wellbore path in each contributing unit (see page 5).

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...

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Permalink Reply by Hobbs on December 14, 2015 at 10:46

Thanks for sharing, Skip, and a Merry Christmas to you and your family.

Hobbs

Permalink Reply by Skip Peel - Mineral Consultant on December 14, 2015 at 10:50

You're welcome, Hobbs.  Merry Christmas to you and yours in return.

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