Does unit size matter for production?

Could a smaller unit be just as profitable as a large one? I guess it depends on the production output; could a 640 acre unit with 6 wells be the same or more profitable as a 1280 acre unit with 10 to 12 wells?

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Permalink Reply by Bill Barnaby on July 7, 2014 at 12:15pm
One could be amazing, one could be awful. You won't know till all wells are drilled and produces.
Permalink Reply by evan on July 7, 2014 at 12:38pm

Yes absolutely it could be. And also goal opposite if the wells in the other half were awesome wells.  To me I want 640 and take my chance

Permalink Reply by Kathleen on July 8, 2014 at 2:54am
I wouldn't expect to see that many wells per pad, yet, but the only way this works in your favor is if you are sure the driller is going to put multi wells on the pad.
In so many areas 1280 is used to hold more land with one well.
Permalink Reply by Gas Boy on July 22, 2014 at 10:54am

LOL...............what a loaded question.  My "unit" size matters! LOL all joking aside, if the production size is larger, then a longer lateral can be drilled and more stages frac'd.  The result - more gas coming out tof the well bore.

Permalink Reply by rmc on July 23, 2014 at 1:30am
Noble Energy is drilling some of the longest laterals in the business in the Majorsville WV area meaning larger production units.
Example well pad RHL Lateral JHS lateral section is 12253' and the total footage is 18190' on the same pad lateral DHS lateral section 13734' total footage 18802'
Permalink Reply by Philip Thackray on July 23, 2014 at 2:32am

In theory, No.  If laterals are twice as long that requires twice as much land.  Your acreage is all that matters unless there is a poor use of some of the land in the unit (bad for landowner) or unless the unit is taking hydrocarbons from property outside of the unit (good for landowner in unit).

I think that the 640 acre or the more recent 1280 acre units are fine.  I will say that if you have a 1280 acre unit and the G&O company holds that with one well, then that could be a negative making larger units more of a problem if you looking for early production.

Phil

Permalink Reply by Zack Jameson on July 23, 2014 at 6:40am

My production unit has 11 producing wells. To me that's a very good thing. Plus, all of my acreage is being used. A big production unit plus many wells equals big numbers.

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