Another newbie question. If a horizontal well crosses our acreage, are we entitled to any income? Thank you
The answer depends upon the state and also if there are perforations in the well where it crosses your acreage. The vertical part of the hole often does not pay as there are no perforations.
Reeves county Texas How would I find out if there are perforations? Thank you.
First you can pull the plat filed with the original permit and see where the first take-point and last take-point are located on the horizontal wellbore. These are the planned starting and ending points of the frac and the production will come from points in-between. You need to also determine exactly where your acreage is located in the section(s) and if you are within a unit. This will generally be outlined on the plat, but there could be other considerations. Second, you can pull the as-drilled plat filed with the completion report. It will show the actual first and last take-points after the frac. On the completion report, there will also be information about the productive interval on the horizontal wellbore.
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TennisDaze Thank you for info. I did find a plat that shows first take point and last take point and crosses our section. Need to figure out if original or completion drawing, and not sure about unit boundaries. But you helped me know I am at least looking in right area. Will do more research. Thank you.
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