The University of Southampton
University of Southampton Institutional Repository

Economic appraisal of shale gas reservoirs

Economic appraisal of shale gas reservoirs
Economic appraisal of shale gas reservoirs
Natural gas produced from shale formations has increased rapidly in the past decade altering the oil and gas industry markets remarkably. The use of horizontal drilling and hydraulic fracturing has allowed previously unrecoverable shale gas to be extracted. Shale gas development is more expensive compared to conventional developments and as such, understanding the economic feasibility is of greater importance in successfully developing the resource. Using the estimated ultimate recoverable expressed in terms of P10, P50, and P90 from 2751 horizontal well production data (all starting production from 2008) from the Barnett shale, a discounted cash flow economic model (MS- Excel based) was used to quantify the effect of finding and development costs (F&DC) and gas prices on the economic viability of horizontal wells within four out of five basins (Strawn Basin, Ouachita Folded Belt, Forth-worth Syncline and Bendarch Basin) in the Barnett shale. The investment hurdle in the economic model was a rate return of 20% and a payback period of 5 years or less. This paper helps determine the percentage of wells within basins in the Barnett shale that would be economically viable at various F&DC and gas prices subject to satisfying the prescribed investment hurdle.
OnePetro/Society of Petroleum Engineers
Kenomore, Michael
94a249af-8730-4253-99a2-1cbccbe8ed31
Hassan Sayed, Mohamed
ce323212-f178-4d72-85cf-23cd30605cd8
Dhakal, Hom
ed7c4499-110b-4203-b5e7-a2386a1c3214
Shah, Amjad
acbfbb5c-fe5d-4703-8f1b-2397f18e80d8
Kenomore, Michael
94a249af-8730-4253-99a2-1cbccbe8ed31
Hassan Sayed, Mohamed
ce323212-f178-4d72-85cf-23cd30605cd8
Dhakal, Hom
ed7c4499-110b-4203-b5e7-a2386a1c3214
Shah, Amjad
acbfbb5c-fe5d-4703-8f1b-2397f18e80d8

Kenomore, Michael, Hassan Sayed, Mohamed, Dhakal, Hom and Shah, Amjad (2018) Economic appraisal of shale gas reservoirs. In SPE Europec featured at 80th EAGE Conference and Exhibition, 11-14 June, Copenhagen, Denmark. OnePetro/Society of Petroleum Engineers.. (doi:10.2118/190824-MS).

Record type: Conference or Workshop Item (Paper)

Abstract

Natural gas produced from shale formations has increased rapidly in the past decade altering the oil and gas industry markets remarkably. The use of horizontal drilling and hydraulic fracturing has allowed previously unrecoverable shale gas to be extracted. Shale gas development is more expensive compared to conventional developments and as such, understanding the economic feasibility is of greater importance in successfully developing the resource. Using the estimated ultimate recoverable expressed in terms of P10, P50, and P90 from 2751 horizontal well production data (all starting production from 2008) from the Barnett shale, a discounted cash flow economic model (MS- Excel based) was used to quantify the effect of finding and development costs (F&DC) and gas prices on the economic viability of horizontal wells within four out of five basins (Strawn Basin, Ouachita Folded Belt, Forth-worth Syncline and Bendarch Basin) in the Barnett shale. The investment hurdle in the economic model was a rate return of 20% and a payback period of 5 years or less. This paper helps determine the percentage of wells within basins in the Barnett shale that would be economically viable at various F&DC and gas prices subject to satisfying the prescribed investment hurdle.

Full text not available from this repository.

More information

Published date: 12 June 2018

Identifiers

Local EPrints ID: 438260
URI: http://eprints.soton.ac.uk/id/eprint/438260
PURE UUID: 0c03adf7-ec08-414e-9a7c-b34afa8feaf0
ORCID for Mohamed Hassan Sayed: ORCID iD orcid.org/0000-0003-3729-4543

Catalogue record

Date deposited: 04 Mar 2020 17:32
Last modified: 18 Aug 2020 01:55

Export record

Altmetrics

Contributors

Author: Michael Kenomore
Author: Mohamed Hassan Sayed ORCID iD
Author: Hom Dhakal
Author: Amjad Shah

University divisions

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×