Question Dear Alan,
I live in NE Pa. Most people in my local area are leased, but I know of several leases all in very close proximity that are held by 4 different gas producing companies. Surely a single producer will develop a single pool and should hold all the lease-rights in that pool - how does a producer deal with other company's leases in their pool before they start drilling?
Answer Dear Larry:
First, it is far from clear what the word pool means, and especially so when few wells have been drilled.
In the classic anticlinal structural trap with a defined perimeter and an oil/water or gas/water contact, a pool can be defined and mapped.
In a Type III reservoir, a fractured reservoir, it is hardly the case. The "Marcellus Shale" play is a Type III fractured play. The Medina is a Type II,a fracture enhanced play.
So, one is not sure that a single producer will develop a "pool". A lot depends on state spacing regulations too.
Producers "do deals", they swap, join forces, etc.
Hope that helps.
AHC
