Wednesday, March 28, 2012

Five Points Make A Trend?

Sources indicate that the Encana Horseshoe Hill 10H-1 is consistently producing in the 689 bopd, 416 mcfd range.  With a fifth point added to the chart below, an obvious trend starts to appear.  More is better. Longer laterals and more stages results in better rates.  No secret here.  Point forward, lower costs will be required to drive the play into an economically attractive range.
Tuscaloosa Marine Shale - Initial Production Comparisons


  1. Kirk,
    I did some figures on the Encana Weyerhaeuser well and it looks like Encana should be making $2 million plus per month net if that production rate holds up. If that is the case the well should pay out in 6 - 8 months. Do they expect more than that?

  2. Joe,
    Unfortunately these unconventional reservoirs decline hyperbolically. Most shale plays decline 75-85% the first year. The first full month of production will likely be the best month. So, your calculations are inaccurate. A well making 1000 bopd the first month will likely produce less than 250 bopd in month 13. Also don't forget the severance tax in LA.