Question about overlapping well pads.

I hope someone can answer this for me.It seems we have division orders for two different well pads on our property and we have been collecting royalties on both.Is this an error?I had to ask the customer rep of the gas company a question and when he looked at our info he said the two pads  seem to overlap,and he didn't know why.Is this something that happens if you are situated near 2 pads?I would like to think the gas company knew what they are doing when they sent out division orders..Thanks.

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Permalink Reply by Bullfrex on January 12, 2019 at 8:54am

Could it be that the wells are in two different formations? One pad's wells target the Marcellus' the other , the Utica formation.

All I can think of as a viable answer, because with an overlap in the same formation, they would be paying twice....not likely.

Permalink Reply by crazy cat woman-+ on January 14, 2019 at 3:23am

Thanks for responding...I will have to check out the formations,though I don't think any Utica is around me.I was wondering if direcrion or well depth may make a difference,but I am not an expert.

Permalink Reply by Bullfrex on January 14, 2019 at 5:49am

Well direction makes all the difference, but depth will not vary significantly unless you change formations.

Permalink Reply by Matt Padden on January 14, 2019 at 4:32am

I have seen properties where they were paid on two separate pads. It makes it easier to access your property by approaching from a different pad, they have less pipe footage tied up in the turn to get the NW or SE lateral.

http://tagis.dep.wv.gov/oog/   Take a look at this WV Dep gas well map.  It's far from accurate, but it makes the point. If you can find the Glenn Didriksen well off Dement Rd., you can see where it overlaps with the Charles Frye Wells.

Permalink Reply by Bullfrex on January 14, 2019 at 5:56am

Hi Matt,

Are you saying the same parcel of land (or any portion thereof?) is included in two production units?

I have not seen this; but I have to question why they would be paying royalty twice on the same parcel of land? In PA, there are setbacks required; the Production Unit boundary has to be 330' (if memory serves me) from the well bore on all sides. The E&Ps are experimenting with various well spacings....ours are roughly 800-900' apart, while I have read that 1000-1200' spacing may yield better results. 

Permalink Reply by Matt Padden on January 14, 2019 at 6:32am

Bullfrex,

Yes.  I'm talking about my experience in WV wells (Marcellus).  The spacing has been as close as 500', followed by additional wells with 500' spacing a few years later. I believe if they (SWN) are drilling additional wells with 500' spacing it must be profitable.  Interestingly, SWN has recently applied for an upper Devonian well just above an existing Marcellus well in OH county.

Permalink Reply by Bullfrex on January 14, 2019 at 6:47am

Hi Matt,

Thanks for the info....we are hoping for a similar scenario when our wells begin the 'dreaded' decline...we will see.

Nice!! A stacked play, perhaps? That is the best one can hope for.

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