RE:Shell sells off even more major shale assetsHi Glacierman
I looked at the Shell asset sale and I think it has some good things to say about MGM position in the Canol.
The he big asset Shell is selling is the Eagle Ford property they acquired for $1billion and then drilled 145 wells for a total approx of $2 billion. The lands are in the condensate window so you would think this would be good. However, they were too close to the dry gas window and condensate yields were only 60 bbl per MMscf. Gas production rates were not high enough to make the play Economic.
in short the entire condensate window is not economic. I think you need 200 bbl per MMscf AND high production wells. The oil window will produce 1,000 to 2,000 bbl per million.
This is is why the land sale flopped. The lands were dry gas and lean condensate lands.
MGM land are on the oil /condensate interface. That is the sweet spot.