E&P Focus- Amidst the Frenzy, Don’t Forget the Conventionals!

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With the rise of unconventional plays and all the attention paid to their massive investments in acreage positions, drilling costs, infrastructure build out, and the race to find iron to HBP acreage before development drilling logic takes hold, we often tend to forget how prolific traditional reservoirs can be. Take a look at the map above…Since 1/1/2010 OK operator Cimarex has two wells that have achieved between 1.4 and 2.7 MMBOE since 2010, and Ballard Exploration’s Gulf Terrace “B”1 has produced over 1.7 MMBOE from Yegua reservoirs in Jefferson County,TX. With minimal lateral lengths befitting directional wells, it would look like the economics–even at 15,000′ drilling depths–are sweet. The max month production for Cimarex’s Amazon Queen #1 was 837,042 MCF;77,749 BO (7/2010), and the decline from there has been stable, with last month’s production (11 months after max production) of 451,094 MCF; 28,171 BO —which strongly implies that there’s still a lot of economic value that will be delivered from this reservoir. And check out the decline curves!!……To see detail on a well, hover your cursor over the dot. Try the Free Trial to create your own maps and to click down for more details, such as play information, related filings, production data, and evaluation tools.

E&P Focus- Amidst the Frenzy, Don’t Forget the Conventionals!

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