Timeless Capital Corp V.TLC

Porosity and Darcies

[Paracelsus]

Porosity is the measure of voids in a solid, how "holey" it is. A Darcy is the measure of the permeability of a fluid as it travels through a certain length of material under certain pressures. In general a pretty good producing Bakken type formation will have a porosity of 10% to 15%. The permeability will be 1 to 100 milli-darcies. As to stable production, a sampling of results from oil companies in the Bakken led me to believe that 1000 BOE/day was a good well. This is so different from the good old days when a good gusher brought in more than 20,000 BOE/day. Other measures for the elephant fields of the past would be porosity of 30% or better and Darcies measured in whole units. Aw, the good old days.

Anything around 10 BOE a day is equivalent to stripper production. So far ACG had brought in those levels of production in the last drilling season. If the company bring in stable production at 1 MBOE/day on just one well then that is good reason to celebrate. Anything near 2000 BOE/day would be considered record production for a horizontal play. Anyhow the porosities and darcies from the technical report are comparable to those with similar rock formations in North America. On average it costs 3 to 5 million dollars to complete a well. So it's a horse race. I wish that we all do well.


References:

https://www.theoildrum.com/node/3868

https://en.wikipedia.org/wiki/Porosity

https://en.wikipedia.org/wiki/Darcy