Wattenberg Infill

Colorado Mineral Rights Weld County, CO
1

Thank you to all that give their experience and advice.

Reviewing documents I've noticed "Wattenberg Infill" as part of the oil firms definition of our region, T7N/S23&24. I've Googled and searched the forum but can't locate a definition of what this is, production estimates or value association. Any help or direction you can send me in would be appreciated.

Thank You very much, John

2

John, that just means that the producing field is Wattenberg and your acreage is in an area they would be doing "infill"drilling to recover maximum reserves.

3

Thanks Michelle,

If I understand, after finding a good producing well they go around and place smaller units to tap residuals, could be many units, reaching easy reserves but producing small qty's for a long time - kind of like tilting the Keg at the end of party. If I may, 1) Does horizontal drilling play effect on infill drilling 2) If you've got 160 gross, 16 net, and 10% royalty, how does payment get figured if a rig is placed on a 5 acre plot in any portion of the gross ? (I rounded everything for computation ease).

I know these are far off from the original question but I find all of this very interesting.

Thanks again for your initial response, John

4

Dear John,

Your interest is based on the spacing unit that is approved by the Colorado Oil and Gas Commission. Most horizontal wells are currently on a 640 acre spacing unit. So any well drilled in that spacing unit you would have your proportionately reduced interest in. 16 net acres/640 spacing unit X your royalty percentage to figure out your interest. The beauty of the new drilling techniques is that multiple wells can be drilled from a single well pad to drain the reserves which lessens the surface impact.

Hope that is helpful.

5

Thanks again Michelle-

I love learning about things !

John

michelle Smith said:

Dear John,

Your interest is based on the spacing unit that is approved by the Colorado Oil and Gas Commission. Most horizontal wells are currently on a 640 acre spacing unit. So any well drilled in that spacing unit you would have your proportionately reduced interest in. 16 net acres/640 spacing unit X your royalty percentage to figure out your interest. The beauty of the new drilling techniques is that multiple wells can be drilled from a single well pad to drain the reserves which lessens the surface impact.

Hope that is helpful.