TSXV:WEE.H - Post by User
Comment by
stag15on Nov 30, 2014 3:36pm
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Post# 23178813
RE:Looking for an oil expert
RE:Looking for an oil expert
island, I am not sure that I understand your question, but I will try to help. Stimulation is typically a method to enhance production on a well with near wellbore damage (scale, fill, asphalt, etc.). The cost is significantly cheaper than developing new fields because the well is already paid for. I can't give a true cost per barrel as it varies widely from field to field and well to well. The problem with stims is that the production added may be cheap, the volume added is small compared to a new project. For example, 10 stims may add 100 bopd at 100% ror, compared to developing a new field for $100 million making 1000 bopd at 30% ror. While the stims are more economic, the average oil company needs bigger projects to offset overall declines.