Tuesday, January 15, 2013

How Does One Get 34+ Wells On A 1280-Acre Spacing Unit in the Bakken?

From a Continental Resources exhibit. Sent in by a reader:


As long as that original well produces (and then, as long as any new well produces), no additional leasing is required for the proposed wells. However, the mineral rights owners will share in royalties from all the wells.
"TF1" through "TF4" are also known as the Three Forks benches. Such payzones do not exist in all areas of the Bakken.

A look at how one might place 14 wells on one pad:


Regardless of where one's ten acres of mineral rights are in any of these four sections, the mineral rights owner will share royalties in all 14 wells.

I remember doing a poll on small spacing units vs larger spacing units. Some of the comments spoke volumes about how folks understood the issue; hopefully "we've" come a long way over the past two years.