DJ Basin beats “Big Three” plays on the commerciality of the fracklog

May 23, 2016

The heart of the DJ Basin, Weld County, exhibits the most commercial fracklog with an average completion cost per barrel of 4.7 USD/bbl, a study by Rystad Energy has shown.

Simultaneously, Weld County also tops the ranking list by inventory size with almost 600 oil wells awaiting completion crews. The large size of the inventory is primarily driven by intentional completion delays initiated by Anadarko Petroleum, which operates almost half of Weld County’s fracklog. PDC Energy, Noble Energy and Whiting Petroleum operate ~10% of the fracklog each.

Rystad Energy estimates that the DUC inventory in the Weld County turns economical at an average WTI price of just ~30 USD/bbl. Other counties that exhibit favorable fracklog economics are Reeves County in Permian Delaware and McKenzie County in Bakken, with an average completion cost per barrel of 4.8 and 5.1 USD/bbl, respectively. This implies that the major part of the US shale DUC inventory is commercial in the current oil price environment, and significant support to the US Lower 48 oil supply can be expected in the near months as market sentiment gradually moves in a positive direction.

 

###

Read more about NASWellCube.

 

Article Contacts

Artem Abramov, Senior Analyst
Phone: +47 24 00 42 00
artem.abramov@rystadenergy.com

Julia Weiss, VP Marketing
Phone: +47 48 29 87 61
julia.weiss@rystadenergy.com

About Rystad Energy

Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy consulting and research products.

Rystad Energy’s headquarters are located in Oslo, Norway, with additional research teams in India. Further presence has been established in Norway (Stavanger), the UK (London), USA (New York & Houston), Russia (Moscow), Brazil (Rio de Janeiro), Africa as well as South East Asia.

About NASWellCube

Rystad Energy’s shale well database, NASWellCube, provides you with a quick way to learn everything you need to know about the DUC inventory. It is possible to see how many wells are pending completion at play, operator or county level. Users can also display the fracklog in an integrated map viewer, and assess each well’s likely productivity and ultimate potential. Finally, NASWellCube Premium is a unique tool to evaluate expected completion cost per well and commerciality of the DUC inventory.