Some very good information on horizontal wells. Page 5 Increasingly, horizontal wells are drilled to the Barnett and Marcellus because of their higher initial potential, higher estimated ultimate recovery, lower finding-and-development cost, shallower decline curve, and better rate of return (Table 2). The plain attraction is that a horizontal well may cost approximately 2–3 times that of a vertical, but the initial potential can be 3–4 times as much. Moreover, complete development of a property may require 4 or more. Moreover, complete development of a property may require 4 or more vertical wells compared to 1 horizontal, or 16 vertical wells compared to one multiwell pad for horizontals. Good horizontal wells tend to be very good.
The length of horizontal laterals can reach 5,000 ft although the optimum is about 2,500–3,500 ft (800m-1km). At a close well spacing (30 acres), = 120,000m2
High lights from table.
IP Mcf/d
Barnett shale. Vertical well 700-1000. well cost $1m Horizontal well 1600-2500. well cost $2m
Marcellus shale. Vertical well 1000. well cost $1.4m Horizontal well 1400-9000. cost $4m
Co mingled A-2 is at 1300 from 3 zones
Now we can not hope to reduce costs in shale development like the US yet. But this should gives an idea.
Finding and development cost, per Mcfg of vertical US$1.71. Horizontal US$1.06. (800m-1km) $1.34 (1.5-2km)
Santos planning first horizontal early this year. Could grab a few head lines.
NWE Price at posting:
4.3¢ Sentiment: Buy Disclosure: Held
