Tuesday, July 31, 2012

Shale Peak Month Rates - A Comparison

IHS just published this in a recent report:
"Strong drilling results, coupled with the large prospective area, and magnitude of the resource potential, combine to make the Eagle Ford Shale play in South Texas a contender for the best tight oil play in the US, according to a new report from IHS.  According to the IHS Herold Eagle Ford Regional Play Assessment, typical well performance as well as peak-month production of the Eagle Ford’s best wells exceeds wells drilled in the Bakken Shale, often considered the tight oil standard. The favorable outlook for the Eagle Ford is reflected in a highly competitive merger and acquisition (M&A) environment, with implied deal values averaging $14,000 per acre for Eagle Ford acreage in 2011 and top prices approaching $25,000 per acre.  “Our analysis at IHS indicates that Eagle Ford drilling results to date appear to be superior to those of the Bakken,” said Andrew Byrne, director of equity research at IHS and author of the study. “Although the well counts aren’t nearly as high at this point in development of the Eagle Ford, the peak of the well-distribution curve compares favorably with the Bakken.”  The most frequent well result of the Eagle Ford is around 300 barrels per day to 600 barrels-per-day for a peak month production average, Byrne said, compared with 150 barrels-per-day to 300 barrels-per-day for the Bakken. The best wells in the Bakken have an average peak-month production rate of 1,000 barrels-per-day or more, while the Eagle Ford central area’s top wells are even better on a barrels-of-oil-equivalent (BOE) -per-day basis."
That presents a nice "backdrop" for the first partial months for the Anderson 17H and 18H that has just been released.
Encana Anderson 17H-1 (19 days): 810 bo, 161 mcf, 475 bw
Encana Anderson 18H-1 (13 days): 900 bo, 91 mcf, 549 bw

1 comment:

  1. I'm hearing that the Bakken wells increase their natural gas output as oil production declines. If that's the case that very well could change the economics of that play for the better.