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PRODUCTION ALLOCATION UNIT AGREEMENT (HORIZONTAL WELL)[Name of Agreement×Whereas Parties own Royalty Interests and Working Interests, or either of them, in the Production Allocation Substances;The
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A horizontal well is a type of oil or gas well that is drilled horizontally underground to increase the contact between the wellbore and the producing formation.
Operators of oil and gas wells are required to file for horizontal well permits before drilling.
Operators can fill out horizontal well permits online through the appropriate regulatory agency website.
The purpose of a horizontal well is to increase production rates and ultimate recovery of oil or gas from a reservoir.
Operators must report details about the drilling plan, well trajectory, and production estimates for horizontal wells.
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