Wednesday, February 22, 2012

Encana Applies For Larger Unit at Anderson 18H

Encana is applying for a second large unit to accomodate multiple laterals.


Source: Southern Herald


2 comments:

  1. Why would they keep extending unit?

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  2. Curious,

    That's a great question. There are multiple advantages for the operator in extending the unit size. While there are certainly more reasons, these are just a few that come to mind

    Hold more acreage per well drilled...
    One well cost to drill what would be the equivalent of the cost of two wells to reach the mentioned lateral length...
    Still in a learning trend with this play; more data, less costs to obtain the data and hopefully, from the operators position, a quicker payout.

    All of this equals better economics for the operator.

    .

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