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Friday, June 22, 2012

Increasing Your Odds in the Bakken

Idle chatter overheard at a Williston diner:
If one owns mineral rights anywhere in a spacing unit, one participates in royalties generated by producing wells in that spacing unit.

With a 1280-acre unit, it is pretty standard to see two wells, right now. With a  2560-acre spacing unit, it is pretty common to see four wells. If you are a mineral owner in a 1280-acre unit, you have two chances at the lottery. With a 2560-acre spacing unit, you have four chances at the lottery.

Over time, the odds will get even better as they add more and more wells to each spacing unit. This is just a snapshot in time.
Fictional conversation, as far as I know, but certainly possible.

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