Unitization FAQs

Waterflood projects evaluated and proposed by RDT Properties, Inc. are estimated to have sufficient additional economically recoverable reserves to warrant capital expenditures and extend the life of the field for the benefit all of the owners in the Unit area.

Mid-Con Energy Group and RDT Properties, Inc. specialize in developing secondary recovery waterflood projects to economically recover oil reserves that would otherwise not be recovered by conventional primary production methods. If you know of a developing or mature oil field that has produced substantial cumulative oil via primary operations and where interests may be available, please give us a call.

What is unitization?
Unitization combines the separate leases and wells, in accordance with regulations, within a field area into one ‘unit’ for purposes of equitably sharing the future production from a specific reservoir.

How is a unitization accomplished?
Each state has its own comprehensive laws and regulations regarding the unitization of oil and gas reservoirs for the purpose of waterflooding. Unitization requires formal notice to every owner within the unit boundary, a public hearing where any owner may voice concerns and approval by the appropriate regulatory body in the state. An operator must demonstrate the technical and economic merits of the project as well as provide an equitable and fair plan of unitization before receiving approval from the state.

Why form a Secondary Waterflood Unit?
Conventional primary production methods only capture and produce a portion (10% to 20%) of the oil that is actually originally in place within the reservoir. The unitization of mature and/or depleted reservoirs in oil fields for secondary recovery can result in the ultimate recovery of additional barrels of oil that would otherwise not be produced. Waterflooding recovers reserves that will otherwise be lost by re-pressurizing the reservoir and displacing some of the oil left behind by “primary production” methods. This will require the injection of water into the reservoir, using both previously producing wells and possibly drilling additional wells.

What is water injection and how does it work?
As oil in a field is produced, the natural pressure that pushes the oil into the wellbore is depleted. Once that pressure is depleted, a significant amount of the oil in the reservoir is left unproduced. Water injected into the reservoir, under the right circumstances, can provide the needed pressure to push the oil into the producing wells. Water injection is a straightforward, proven process for recovering additional oil that would otherwise be left in the ground.

How does Unitization affect mineral rights ownership?
Unitization will not change mineral rights ownership. It does provide an equitable basis for sharing production from the reservoir within the unitized area among the various mineral and working interest owners.

Who will pay for the waterflood? As with drilling a well on a lease, all of the costs associated with the unitization process, development and production, and continued maintenance of the unit are all paid by the Unit working interest owners. Royalty owners do not pay any of the costs associated with flood development or ongoing operations.

Where will you find the water to use for injection?
Waterfloods typically use more water volume than the produced volume of oil. This water, usually of brackish to salty character, is often found in water bearing reservoirs either above or below the producing zone, and will be produced from new wells or existing wells within the unit area. At the end of the project, all water used during the process of waterflooding will remain in the producing reservoir.