CUL units revisted
Have there been any recent updates on how Louisiana will view CUL's (orders, separating sections, royalty based on % perforations per Section....)?
Recently, landman stated that what they are proposing is NOT a CUL but a multi-section lateral. If such a creature, how does it differ?
Caddo Parish, Haynesville Shale
Tags: Haynesville, Shale
Views: 215
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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on -
Some in the business still use the term, CUL. Whether a multi-unit well is called a CUL or an HC (Horizontal Cross - the state's official abbreviation) doesn't matter. Well production is reported the same and allocated between producing units the same by the state. Operators may treat that production differently on royalty statements by an adjusted decimal interest fraction. It is possible that the comment refers to a well producing from two sections that are unitized in the same unit. A ~1280 acre, two section drilling unit. Those have become common but production is reported the same as a single section unit, no need for allocation.
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