Here we go again with a long, skinny unit. In this case, 169 acres. I have lost count of how many long-skinnies Encana has had recently. Is is just me, or has the trend changed and the days of 640 acre units is history? I thought Encana was looking at the "gas factory" approach, with eight (or more) wells per unit. Not if you only have 140 acre units. Are we now looking at one-and-done?
Steve, 640 acre units were never the norm in Texas, only in NW. LA. where units are formed by sections. And units that size have proved problematic for LA. shale operators owing to a restricted lateral length. Where possible surface sites are located off unit so that the max length lateral is more easily drilled. And I'm sure some of the E. TX. members can give you further information regarding how operators over there start out with an initial tract or tracts and then add more tracts to finally come up with a unit in the 700 to 800 acre range that is roughly rectangular because that facilitates drilling horizontal wells. Doing so does not preclude EnCana utilizing its Gas Factory concept. Eventually all units will be developed in that manner.
This is not typical for an EOG unit. They may have an agreement to drill a non-pooled well on this acreage or they might be working on more leases to add to it. I don't know of many units that stayed this small and none in San Augustine County.