Unit Operator

Definition - What does Unit Operator mean?

A Unit Operator is an individual who has expertise to explore hydrocarbon reservoirs, drill a well for appraisal testing, then once sufficient quantity is administered, drill a well and conduct an economic production of hydrocarbons from it. It is similar to any operator operating on an oil and gas lease, but the word “unit” makes it more specific. A unit operator operates on a larger scale on a unit agreement of pooled acreages.

Petropedia explains Unit Operator

Unit operator operates on unit agreements and has majority of pooled units to operate on. Other operators can operate on pooled acreages, but majority of the portion of land remains with the assigned unit operator. This operator can further lease out smaller portions to operate to various other operators.

A unit agreement is a development plan on the multiple number of smaller lease acreages pooled together to make up a large pooled acreages or a unit. A unit agreement provides information of the various smaller acreages such as its location, gross acres, royalty percentages of each tracts, etc.

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