To date, EnCana Corp. (ECA-$29.52) has demonstrated success in offsetting the estimated 8 percent rise in oilfield services costs through operational efficiencies that have lowered year-on-year upstream spud and administrative costs by 17 percent (to $0.99 - $1.10 per Mcfe).
U.S. shale well-development and completion costs have fallen anywhere from 15 percent to 40 percent, depending on location. For example, in the Haynesville Shale play, well cost expenses dropped from $15.6 million in 2008 to $8.0 - $9.0 million per well during third-quarter 2010!
Could steep depletion rates typical of recent Haynesville wells topple the Canadian-based natural gas producer’s plans to grow its net recoverable gas reserves?
U.S. shale well-development and completion costs have fallen anywhere from 15 percent to 40 percent, depending on location. For example, in the Haynesville Shale play, well cost expenses dropped from $15.6 million in 2008 to $8.0 - $9.0 million per well during third-quarter 2010!
Could steep depletion rates typical of recent Haynesville wells topple the Canadian-based natural gas producer’s plans to grow its net recoverable gas reserves?
Read More at BNET
Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.
Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.
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