land_ownership · spacing
Horizontal Well Allocation Factor
Allocation Factor = Wellbore Length in Unit / Total Horizontal Wellbore Length
click formula to derive ↑
Inputs
ft
ft
Description
Computes the fraction of a multiunit horizontal well's production, costs, and proceeds attributable to one spacing unit or lessor's tract, from the wellbore length located within that unit relative to the well's total horizontal length. Both Oklahoma's completion-interval-length rule and Texas's productive-lateral-length rule for allocation/multiunit horizontal wells reduce to this identical length-ratio computation — they differ only in which length definition applies, not in the underlying math — so one calculator with state-specific regionNotes covers both, rather than separate state calculators.
Variables
| Symbol | Unit | Description |
|---|---|---|
| AF | fraction | Allocation Factor |
| L_u | ft | The horizontal wellbore's length located within the specific spacing unit or lessor's tract — a completion interval length (Oklahoma) or productive lateral length (Texas), per the governing state's definition (see regionNotes). |
| L_t | ft | The multiunit horizontal well's total completion interval or productive lateral length across all units/tracts it penetrates. |
Assumptions
- Production, costs, and proceeds are distributed uniformly per unit of wellbore length across the entire lateral — a simplifying assumption both the Oklahoma and Texas regulatory frameworks make by using a straight length ratio rather than a production-log-weighted (e.g., flow-log or perforation-cluster-weighted) allocation.
- Length figures are actual as-drilled/as-completed wellbore lengths within the stated unit or tract boundary, not measured or true vertical depths.
Limitations
- Does not itself determine which length definition (completion interval length vs. productive lateral length) applies — that depends on the governing state's rules and the specific spacing/pooling or allocation order; confirm which measurement basis is required before entering lengths.
- Assumes a simple straight-line length ratio; does not model production-log or flow-meter-weighted allocation methods sometimes used as an alternative to a pure length ratio in more complex multiunit or allocation-well arrangements.
Use Cases
- → Multiunit horizontal well revenue allocation: Determine what fraction of a horizontal well's production revenue is attributable to a specific spacing unit or lessor's tract, for division order or joint-interest-billing purposes.
- → Allocation well tract share estimation: Estimate a lessor's tract-level production share in a Texas-style allocation well from productive lateral length, or an Oklahoma multiunit well from completion interval length.
Related Calculations
Region Notes
Oklahoma
52 O.S. §52-87.8 and OCC multiunit horizontal well rules define the allocation factor for each affected unit as the completion interval length located within that unit divided by the entire completion interval length of the subject multiunit horizontal well — confirm the governing spacing/pooling order's exact completion interval length figures before entering them here.
Texas
Texas Railroad Commission allocation-well practice computes the allocation factor for a lessor's tract as the productive lateral length of the horizontal wellbore on that tract divided by the total horizontal wellbore length — a different length definition (productive lateral length, not completion interval length) applied to the same ratio formula; confirm which figure the specific allocation well's permit or agreement actually uses.
References
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