What is difference in Gross vs. Net Wells?
A company may own minority or majority operating interest in several wells and gross wells is the number of wells they have interest in and net wells is if you add up all the percentages from several wells and for every 100% you get a net well, so you can have 40 gross wells and only 3 net wells. Companies have net and gross wells as mineral owners have gross and net mineral acres. I hope this helps.
Thank you - I now understand. Jim
r w kennedy said:
A company may own minority or majority operating interest in several wells and gross wells is the number of wells they have interest in and net wells is if you add up all the percentages from several wells and for every 100% you get a net well, so you can have 40 gross wells and only 3 net wells. Companies have net and gross wells as mineral owners have gross and net mineral acres. I hope this helps.
Question - Forest Oil Corp. has reduced Eagle Ford shale drilling budget for 2014 due to drilling into a fault line on last three wells drilled in EF shale in Dec. 2013. What is negative in finding a fault line while drilling?
Also Forest stock is at $1.93 as of 3/4/14. Why is stock so low considering reserves and production?