Well Spacing is a restriction on the number of wells that can be drilled on a given area.
How is it important to us?
Well Spacing regulations are based on some economic, environmental and/or safety concerns like drilling unnecessary wells and wasting oil and gas. It also protects the correlative rights of landowners and well operators and maximizes the reservoir production (by avoiding inter-well interference).
Well spacing depends on the reservoir characteristics (i.e. the depth); but for most oil wells, the spacing is 40 acres and 640 acres for gas wells.