Why would an O&G exploration company need or want 80 acres instead of 40 acres around vertical wells in a lease? It seems to me that 40 acres is plenty for whatever they require to support production from a well. I don't want to say no to 80 acres if there is a good reason for the company to have it. A 1937 lease only required 20 acres around a well.
Thanks in advance.
The Oklahoma Corporation Commission (or equivalent in another state) approves spacing areas on how much area it believes is reasonable to properly develop. 80 acres is not uncommon and they're referred to as standup 80 or laydown 80 depending on which way the 80 acres run.
Wilson,
All exploration companies dream to find a field to develop when they drill in a new area. Offset wells are less risky and less costly. Many times companies won't let geologist drill wells without "protection" acreage around it that can be exploited if the first high risk well is good. Land owners can "attract" an exploratory well driller by agreeing to "farm out" extra acreage in the event of success. It is good for everybody to find out what is really down there.