Have an old lease with minimal production for years on a 640 spacing unit with Latigo. We have received notice for OCC hearing on Feb 28 by Crawley Petroleum requesting the deletion of the 640 unit and to order a horizontal spacing of 1,280 acres. Will doubling the size of the spacing unit to 1,280 acres effect the Royalty Owner? Any info would be greatly appreciated.
Yes & No. Your interest will be determined by the number of acres you own divided by 1280 acres times your royalty percentage. Your interest will basically be cut in half vs a 640 unit, BUT you will received production from twice the amount acreage so it all works out the same.
Thanks for your quick response to my question. It was very helpful.
The company will likely be drilling a horizontal well based upon that increase. This can be really good news for you! Expect to receive lots of offers to purchase your minerals.
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