DEFINITION of 'Net Acres'

The amount of leased real estate that a petroleum and/or natural gas company has a true working interest in. Net acres express actual percentage interest, when a company shares its working interest with another company; the total acreage under lease by a company is referred to as gross acres. Net acres account for 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.

BREAKING DOWN 'Net Acres'

The number of net acres a company has invested in, 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? The larger the company, the more net acres it will have.

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