Why reduced CAPEX for same production worksBeen wondering about the waterflood, so I did some looking. The waterflood is a no brainer. Reduces decline from ~ 30 % to 20 %. Relatively inexpensive to do (loose one producer to make an injector, possibly 1 in 3 wells converted to injection).
How they can call this tight oil is beyond me. The perms vary between 0.5 to 5 mD. Its not great, but many carbonate reservoirs only have 1 mD and we don't call them tight. This apparently isn't the case for the US side which is usually less than 1 mD.
This also suggests the lifespan of this field will be a 20 yr+. I don't think this will be true for a lot of other tight oil plays.
2020 is when some predict OPEC takes charge of oil prices again.
Thanks for this marvelous gift bears.