Well Spacing YGRCan anyone here explain w
hy is Yangarra not spacing the wells further apart in Chedderville and other locations? It seems evident that 100/01-06-037-07W5/00, 100/03-17-037-07W5/0, and 102/16-33-039-08W5/0 are showing significant child well interference as 20t wells with much lower production than both their adjacent wells. Well 104/14-18-037-07W5/0 is showing the same thing, but with 15t. The child wells that are between an old well and a concurrent well all seem to have a negative NPV at $55wti.
All competitors in the proximity are spacing their wells much further apart. YGR also used to space further apart (pre - H2 2018) with monsters wells around the 102/03-26-039-09W5/0 location. They had huge rates with modest declines. Then most the spacings got tighter and the child well results got much worse, even with 20t.
I don't understand why they keep doing this. It seems like they could space to 6 wells a section in Chedderville and create monster wells that create more free cash flow than doing 8 smaller wells. They would extract less oil over time, but at a lower cost if they exclude these dud child wells.