Gross Acres
Categories: Real Estate
Gross acres is the amount of real estate that’s been leased (in acres, no doubt) to petroleum and natural gas companies for working interest.
Working interest is interest that’s paid from the petro/gas companies to the owner of land leasing it to them...but also, it means they’re in a contract that makes them just as liable for the ongoing costs that it takes to explore, drill, and produce the oil/gas. Investors can get in on this action, too.
Gross acres is one of two things used to calculate net acres. Gross acres lets investors understand the literal size and scope of a company’s size in the drilling market. The really big companies will have an interest in hundreds of thousands of acres, for reference.