Baytex Energy Corp T.BTE

Eric Greager words ...

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During a recent interview...I am very optimistic for NGL at low CAPEX !!!

I always consider the NGL as a good prospect from the Ranger lands... Eric Greager, $BTE Baytex Energy CEO, on their conference call last week, discussed their Refrac opportunity in the Eagle Ford: “We actually do.

So, we continue to high grade our candidate list. Candidate selection is probably the most important part of a refrac program.

You've got to find candidates that have the right wellbore architecture, that have the right degree of primary cementing and zonal isolation, tubulars that are large enough to be able to get in and out of without getting into ultra-slim hole technologies that become a bit fragile for this kind of work and we have a long list of candidates.

The other thing that's important is the candidates have to date back to a vintage or a time when they were, let's call it, under-stimulated.

These are the days back in the day when borate and zirconate cross-linkers were the thing and the very low volumes and low tonnage and leaving a lot of resource in the ground.

To put it in just kind of scale context, our position began developing in the early stages of the Eagle Ford development and many of those opportunities can now be re-entered and re-evaluated and re-stimulated.

If for the sake of just illustration, let's say there are 40 million barrels of oil equivalent in a section in Eagle or just a representative number to put it in terms of scale, a full development program today in an unconventional like the Eagle Ford may recover 10% to 15% of the total resource in place. So, 4 million boe to 6 million boe of a 40 million boe original resource in place number.

That leaves 85% of the original resource still in place and this is a time and a place and an opportunity at the right pricing and economics for refrac, re-stimulations to extract some of that value that's left in the resource. And in some ways, other technologies that feel – that look and feel like the unconventional version of EOR.

And so lots of opportunities to continue unlocking this. We're doing the science, the math and the physics today to better understand it, but we do have refracs in the ground and a long candidate list that we're – that we are currently evaluating and we'll be excited to talk about it at the right time.”