QEC versus Contact on TCF in placeQuesterres latest presentation shows anywhere from 3.38 TCF to 8.46 TCF on recovery rates between 10% and 25%.
It made me ask what recovery rates are in the Barnett Shale. Here is what I found in the Fort Worth Star Telegram:
Spend a few million bucks putting together a lease, drilling a well and coaxing it to give up some of the natural gas locked up in the Barnett Shale, and what do you get? Maybe 20 percent to 30 percent of the gas that's there.
Not good enough, producers say. They're developing new techniques and technologies to boost that to 50 percent or more, and if they succeed, it could be the answer to what one petroleum engineer calls "the $100 billion question."
Horizontal drilling -- turning a steel drill pipe 90 degrees from vertical to horizontal -- is what made the shale happen. But that's yesterday's news.
Today, producers are making horizontal runs, called laterals, up to twice the industry's more typical 3,000 feet. They are also making more fractures along those laterals and fracturing two adjacent wells at the same time in an effort to crack the hard shale like a windshield after a North Texas hailstorm. They are squeezing in an extra well bore between two existing wells, boosting recovery while using the existing drilling site, an increasingly scarce commodity as drilling moves into urban areas.
https://www.redorbit.com/news/business/1167455/going_the_distance_to_get_more_from_barnett_shale/index.html
Just think - with recovery rates of 50% Contact has 10 Trillion TCF and Triangle has 24 TCF of natural gas.
Now QEC is much further along in proving there deposit but just think of the effect of improving technology on the valuations of CEX and TPLM