GREY:MGMCF - Post by User
Comment by
OilEngon Jan 08, 2013 4:23pm
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Post# 20811861
RE: like the well
RE: like the well As a rule of rough thumb a horizontally fractured well will produce between 3 and 7 times the rate of a vertical fractured well. I use 5 as my rule of thumb. This means that a 50 BOPD vertical is equivalent to 250 bopd. I am getting this from a study done by Tudor Pickering.
The Canol economic threshold is surprising low at 70 BOPD for a 30 IP on a vertical. This equates to a 3% recovery factor. Most shale companies are quoting much higher recovery factors. EOG in Eagle Ford is 6%, Bakken is 10%, Petrobakken claims 15% (seems excessive), Trilogy in the Montney says 10 to 24% (WOW). The latter company is a Clay company.
The reservoir looks as good as any of the above; however, the test will be the deciding factor. If the Canol has recovery factor anything like the other shale oil plays then MGM is in the money.