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
Shelby
Views: 56
Replies to This Discussion
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Permalink Reply by shelby on
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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 -
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Permalink Reply by Les Bamburg on -
Shelby, you are correct except it is more than one "company" per section (with one operator).
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Permalink Reply by Two Dogs, Pirate on
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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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