Gross Acres

AAA

DEFINITION of 'Gross Acres'

The amount of leased real estate, that a petroleum and/or natural gas company has a working interest in. Gross acres is different from net acres if a company shares its working interest with another company or companies. The company's true interest is expressed in net acres, which is the company's percentage interest, multiplied by the gross acreage. If a company holds the entire working interest, its net acreage and gross acreage will be the same.

INVESTOPEDIA EXPLAINS 'Gross Acres'

The number of gross acres a company has, tells investors something about the company's size, market position and current activity, but it does not tell the whole story. What is the company doing with that acreage? Is it drilling wells and at what pace? How many barrels of oil is the area producing and how many is it expected to produce?


Larger companies will usually have an interest in hundreds of thousands of gross acres, while smaller ones may only have an interest in tens of thousands of gross acres. The largest companies will have total holdings of millions of gross acres.

RELATED TERMS
  1. Oil Shale

    A type of sedimentary rock composed chiefly of a combination ...
  2. Net Acres

    The amount of leased real estate that a petroleum and/or natural ...
  3. Crude Oil

    A naturally occurring, unrefined petroleum product composed of ...
  4. Upstream

    Operations stages in the oil and gas industry that involve exploration ...
  5. Sour Crude

    The name given to barrels of crude oil that do not meet certain ...
  6. Barrel Of Oil Equivalent (BOE)

    A term used to summarize the amount of energy that is equivalent ...
Related Articles
  1. Oil: A Big Investment With Big Tax Breaks
    Investing Basics

    Oil: A Big Investment With Big Tax Breaks

  2. Oil And Gas Industry Primer
    Active Trading

    Oil And Gas Industry Primer

  3. Uncovering Oil And Gas Futures
    Active Trading

    Uncovering Oil And Gas Futures

  4. A Guide To Investing In Oil Markets
    Options & Futures

    A Guide To Investing In Oil Markets

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center