What would your strategy be for negotiating that agreement? What would be the steps required to have an approved unitization agreement in that field?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Assume your company operates 60% of the wells in an aging field in Scurry County Texas. The field has reached the stage in its development where a waterflood is required or the field will quickly decline into a very large number of marginal wells. Your company has determined that a waterflood is feasible but it would require the cooperation of the other 40% of the operators in the field. Thus an unitization agreement is required. What would your strategy be for negotiating that agreement? What would be the steps required to have an approved unitization agreement in that field?

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