Production Unit

General Mineral Rights Discussion
1

This may be a silly question but what is the size of the production unit on a vertical well? Any guidance is appreciated

2

If you have leased your minerals, your lease should say how many acres to a vertical oil or gas well. I believe this has to be negotiated before you lease, otherwise the Lessee makes the decision on how many acres are in the production unit.

3

The state may have guidelines for verticle well spacing.

4

The State determines the production unit size. In MOST cases, It can be from just a few acres to 640 for a vertical well. State agencies have a website for spacing orders which will show what production unit size was approved.

5

Thanks everyone for the responses. What does spacing E2 mean in North Dakota?

6

E2 means essentially east 1/2. By itself is of little meaning. You can't just pluck a description or term out of context and expect it to have meaning. Gerald said:

Thanks everyone for the responses. What does spacing E2 mean in North Dakota?