Stabilization - Acreage and Potential Factors in Allocation

The writer apologizes for presenting this very elementary analysis of one aspect of proration, but a search of the literature failed to disclose any concrete illustrations of the effect of various proration formulas upon the allowable oil produced by tracts of different sizes. Many engineers have doubtless made somewhat similar calculations and are fully acquainted with the results. The various allocation formulas that are in use are based on one or more of the following factors: (1) wide-open well potential, (2) potential through an orifice, (3) uniform well allowable, (4) acreage, (5) sand thickness, (6) bottom-hole pressure, (7) productivity index, and (8) volumetric displacement. Of these, the unrestricted potential formula, or open-flow test, and the uniform well allowable are commonly regarded by engineers as those least likely to give each producer his proportionate share of the oil or gas, as represented either by acreage or by sand thickness, or both, except when the wells are located on tracts of large size. Unless the mechanical equipment that may be used during the potential test and the method of taking the test are both specified, the net result of the potential formula is to practically force the operators to use special equipment and adopt special procedures prior to and during the potential test, so as to secure the largest possible allowables. Much ingenuity and skill have been devoted to this,problem, but the general effect is to permit excessive allowables for very small tracts, and stimulate unnecessary drilling. It is interesting to compare some of the high yields from the Wilcox horizon at Oklahoma City with each other, as an illustration of the effect of an allocation factor based solely on potential (Table 5). One of the glaring instances is a well on a ½-acre lease, which had produced, as of September 1936, at the rate of almost 3,000,000 bbl. per acre. This is at least twice as many barrels as could have been present under the property if the reservoir had consisted of a tank of oil 200 ft, deep and 56 acre in area. Numerous combinations of acreage, potential, bottom-hole pressure, sand thickness, etc., have been proposed and are in use in various fields.