By November 15, 2012 0 Comments Read More →

Ultra-Deep Unit

Lauren Estopinal – 

An ultra-deep unit is a special unit established by the Department of Natural Resources when drilling exceeds 22,000 feet. Representative Dove brought legislation in the 2012 session to allow for ultra-deep units. The unit differs from a traditional unit in a couple of ways. First, a unit will be established before a well is drilled, as opposed to a traditional unit, which is formed after the unit well is drilled. Second, the size of the unit will be based on geologic structures rather then land mass. A structure is defined as a unique geologic feature that potentially traps hydrocarbons in one or more pools or zones. The idea behind this special unitization method is to allow operational costs for ultra-deep drilling exceeding 22,000 feet to be shared. These wells are estimated to cost upwards of 100 million dollars.

About the Author:

The Louisiana Oil & Gas Association (known before 2006 as LIOGA) was organized in 1992 to represent the Independent and service sectors of the oil and gas industry in Louisiana; this representation includes exploration, production and oilfield services. Our primary goal is to provide our industry with a working environment that will enhance the industry. LOGA services its membership by creating incentives for Louisiana’s oil & gas industry, warding off tax increases, changing existing burdensome regulations, and educating the public and government of the importance of the oil and gas industry in the state of Louisiana.

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