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1.5¢ samson oil & gas limited

Since Shlumberger is prepared to foot the bill upfront, it could...

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buc

7,852 Posts.

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16/05/15

08:49

Post #: 15292397
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Originally posted by buc ↑

Example :

Eagle Ford Shale wells are producing roughly 500 barrels per day of oil on average by some estimates.

Given the widely cited 70% decline rate over the first year of production in a new well, and an $8 million well cost, that makes the extraction cost roughly $40-50 per barrel of oil produced.

If refracking a well allows a recovery of even half the amount of oil as the original well, then the price per barrel extracted falls to $20 per barrel.

In the current price environment, and with the big servicers willing to take on the initial production risks, that business model makes tremendous sense.

http://oilprice.com/Energy/Crude-Oil/The-Latest-Business-Model-That-Could-Save-Fracking.html

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Since Shlumberger is prepared to foot the bill upfront, it could be worth
re-fracking, #Gene ip 2936 bopd, #Gary ip 2780 (Bakken)

For a cost of only $500K per/well to SSN, oil production could easily increase by a further 500 bopd.

SSN Price at posting: 0.9¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

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