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What is a 1280 spacing unit?

A spacing unit refers to the area alloted to a well where an operating oil company has acquired a majority working interest and will drill at least one well. In North Dakota, this is typically 1280 acres or one mile by two miles commonly referred to as a two sections.

What is a spacing unit in oil and gas?

A spacing unit is an area allocated to a well to drill for and produce oil or natural gas. Spacing units are established by statewide laws and regulations, and are governed by Article 23, Title 5 of the Environmental Conservation Law (ECL).

What does unit mean in oil and gas industry?

When youre at an oil and gas drilling site, a unit refers to the allowed region or boundary of a consolidated area where you are allowed to drill, explore and produce minerals. Oil and gas units provide options for joint operations to the operators and producers of mineral resources.

What is the drilling and spacing unit?

The acreage area that can be used to drill a well. The size of the unit depends on the spacing rules and well densities under the field rules of the particular jurisdiction.

Why is well spacing important?

Well spacing and its density shall ensure the maximum allowable rate of development and the ultimate hydrocarbon recovery factor of the developed productive formation.

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