We are still waiting to sign a lease, but before we do, I'd like to hear what people think the future might bring on a couple subjects:
1) Do you think the O&G cos will create a large unit (1280 ac) and then drill one well on one pad to hold the entire unit HBP, or
a) will they drill several wells on one pad and produce them to the max now? or
b) will they drill several wells on one pad and choke off most of them, produce one and then produce them to the max later when the price of gas is higher? or
c) will they come back in later when the price of gas is higher and drill more wells from the same pad?
2) Is it better to be in a small unit (640 ac) with 6 wells or a large unit (1280 ac) with 12 wells?
Depends on how well their lease is written.
Agreed, but who thinks of these things when you are looking at a lease? I bet few if any O&G attorneys do
The one that is working for my land owner group in Wayne county does.
They will not permently reduce the pad. They plan on coming back. When will determined by many factures.
If I could predict the future, I'd be a ga-zillionaire by now :-)