What it means to have an in-fill drilling program is that new wells are targeted to be drilled in an area with a very well known geology.
Often, major oil and gas companies will drill an area extensively and gain a very strong understanding of the geology. This geological knowledge can be obtained by smaller operators in the area.
A strong investment opportunity often presents itself when major companies leave an area that they drilled extensively for more lucrative opportunities such as offshore wells or an asset that has seen little production and thus has a greater upside potential necessary to feed a multi-billion dollar valuation on Wall Street.
When major companies leave behind well-known fields, it leaves the opportunity for in-fill drilling programs by smaller companies. These smaller companies can benefit from known geology to drill in high-value locations left behind by a much larger company pursuing a much higher profit margin elsewhere.
To be clear, what is left behind can be extremely lucrative on a smaller, scale even if the in-fill drilling operations can’t sustain a multi-billion dollar publicly traded company.
In-fill drilling programs can also be conducted lucrative in areas that were originally explored by smaller companies who couldn’t afford to lease up the entire area that has potential production based on the first discovery of oil.