Answer: There are two types of units, a drilling and spacing unit and a unitized field, both referred to as units.    The drilling and spacing unit is the area set by the oil and gas regulatory agency for each state that defines who will share in a particular well.  The unitized field is multiple drilling and spacing units that are combined so that all working interest and royalty owners share in the production proportionately from the entire field.  Also known as a fieldwide unit, these units are created usually for the purpose of secondary production.  See our next tip of the month for the definition of secondary production.   

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