I just wanted to pass on to you that the Texas Railroad Commission normally does start with a GAS unit's minimum size being 640 acres, but not necessarily an OIL unit's size, which can be as small as 40 acres or even less. As you probably know, many wells produce saleable quantities of both oil & gas, but they are determined to be oil wells or gas wells based on their gas to oil ratio (GOR). Unit size, especially with regard to vertical wells, also tends to vary with depth to the producing formation, with shallower wells requiring fewer acres and deeper ones more. Size of units also depends on whether we are talking vertical or horizontal wells. Further, well spacing requirements are also often reduced as development of a field/trend area progresses.
Not long ago I leased my interest in four contiguous sections in Loving Co. to EOG Resources. The lease provided for the maximum size of oil units to be 320 acres.
They have established eight appx. 320 acre drilling units (each 2 miles long and 1/4 mile wide) and 10 horizontal wells are currently permitted for the Wolfcamp Formation. The wells are classified as oil wells. The laterals (horizontally drilled lengths) are permitted to be approximately 2 miles long in each well. There are no producing wells on the acreage.
They just commenced drilling this lease within the last two weeks or so. Two rigs are running and are drilling two wells simultaneously on the acreage at this time. The interest in drilling so rapidly is not related to lease expriations coming up, as they have plenty of time left. How rapidly other locations will be drilled is yet to be determined, but they have told us that they plan to drill at least 10 Wolfcamp wells (including the two currently underway) on us "short term" (whatever that means). They have indicated to us that they can eventually drill up to 6 horizontal Wolfcamp wells per unit. There will also almost certainly be wells drilled into the shallower Bone Spring Formation at some point, as well, totally independent of the Wolfcamp wells.
Hope you find this of interest. While the specifics of this example may vary from your kwn, it can give you a good idea as to the kind of development that is going on in Reeves Co., as well.