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Vaca Muerta development study


Vaca Muerta development study

Report summary

Our inaugural Vaca Muerta development study offers ground-breaking economic analysis of Argentina's massive Vaca Muerta shale. We divide the play into four sub-areas and use reported well-by-well data to forecast well economics and production. See how the Vaca Muerta compares to North American analogue plays in terms of well performance, costs and horizontal development.

The main deliverables of this report are PDF and Excel file downloads


What's included?

This report includes 2 file(s)

  • Vaca Muerta study charts.xls XLS - 8.27 MB
  • Vaca Muerta development study.pdf PDF - 5.16 MB

Description

This Vaca Muerta development study report provides ground-breaking well-by-well analysis of production, well performance, reservoir metrics, and much more.

The play is divided into four distinct sub-plays and this report provides insight into value, costs, reserves, and type-well economics for each area. The sub-plays likely to drive value creation are identified, as well as the oil and gas prices and efficiency gains needed to produce positive returns.

The report also analyses the four sub-play results from a perspective of both vertical and horizontal wells, resulting in eight unique scenarios. Using the results, we illustrate how the ongoing switch to horizontal drilling will impact production and value.

The study enables potential investors, governments and companies to evaluate the relative attractiveness and value of acreage positions. Furthermore, the study helps benchmark the performance of each Vaca Muerta sub-play with that of North American analogues.

These findings are based on original well data from Argentina along with Wood Mackenzie's expert analysis.

  • Summary and key issues
  • Executive summary
  • Play overview
    • Lease holdings
    • Company notes
    • Assessing the above ground risk
    • Labour
    • Prices
    • Federal
    • Geologic benchmarking
  • Americas resource play analogues
    • Methodology
    • Well economics
    • From current to future type wells
    • Productivity
    • Costs
    • Correlations
    • Loma Campana Horizontal development and sensitivity
    • Loma Campana Vertical development and sensitivity
    • Oil Window Horizontal development and sensitivity
    • Oil Window Vertical development and sensitivity
    • Condensate Window Horizontal development and sensitivity
    • Condensate Window Vertical development and sensitivity
    • Gas Window Horizontal development and sensitivity
    • Gas Window Vertical development and sensitivity
  • Development and valuation
    • Vaca Muerta depth and well count
    • Vaca Muerta production
    • Vaca Muerta value and capital spend
    • Vaca Muerta as a percent of acreage portfolio
    • Price sensitivities
    • Sub-play valuations and scalability
    • Full cycle value creation in global unconventionals
    • M&A activity
  • Sub-play type curves and data
    • Loma Campana results
    • Loma Campana Vertical single well assumptions
    • Oil Window results
    • Oil Window Vertical single well assumptions
    • Condensate Window results
    • Condensate Window Vertical single well assumptions
    • Gas Window results
    • Gas Window Vertical single well assumptions

In this report there are 78 tables or charts, including:

  • Summary and key issues
  • Executive summary
    • The Loma Campana block emerges as the initial core area
  • Play overview
    • Wells by operator and relative stratigraphic position of target formation
    • Lease holdings
    • Assessing the above ground risk with tools from Maplecroft
    • Geologic benchmarking
  • Americas resource play analogues
    • Forward looking Vaca Muerta sub-play single well economics
    • IP rates need to increase and costs need to decrease
    • Transitioning to horizontal wells
    • Productivity: well by well initial production rates and liquids weighting
    • Productivity: Vaca Muerta IP30 well results
    • IP rates of the first 100 wells drilled and the type well
    • Applying this uplift to Vaca Muerta wells
    • Costs: type well cost assumptions
    • Well cost reductions seen in North America
    • Well cost reduction percent applied to Vaca Muerta
    • Measured depths
    • Wolfcamp operators need a 20 well learning curve
    • EOG’s first 20 wells drilled into the Eagle Ford Shale
    • Pounds of proppant in horizontal North American wells
    • Lateral length in horizontal North American wells
    • Frac stages in horizontal North American wells
    • Frac stages in horizontal North American wells
    • Cost and production rate sensitivities
    • Actual IP rates by year
    • Costs and production rate sensitivities
    • Actual IP rates by year
    • Cost and production rate sensitivities
    • Actual IP rates by year
    • Cost and production rate sensitivities
    • Actual IP rates by year
    • Cost and production rate sensitivities
    • Actual IP rates by year
    • Cost and production rate sensitivities
    • Actual IP rates by year
    • Cost and production rate sensitivities
    • Actual IP rates by year
    • Cost and production rate sensitivities
    • Actual IP rates by year
  • Development and valuation
    • Vaca Muerta sub-play development assumptions
    • Number of wells drilled by year
    • Well count, production and horizontal development
    • Production by product
    • Production forecast by sub-play
    • Production by horizontal and vertical wells
    • Wells drilled by year and rig count assumption
    • US$9.7 billion remaining post-tax value
    • Implied risked acreage value
    • YPF remains the dominant player but will need partnerships for scalable development
    • The effects of prices changing or currency factors deflating
    • The Vaca Muerta is still in its early days
    • Everyone can create reserves
    • Full cycle value creation is more elusive
    • M&A cumulative deals
    • M&A table
  • Sub-play type curves and data
    • Description
    • Wells drilled by operator by year
    • Formation development assumptions (area potential)
    • Vaca Muerta development study: Image 62
    • Vaca Muerta development study: Image 63
    • Description
    • Wells completed by operator by year
    • Formation development assumptions (area potential)
    • Vaca Muerta development study: Image 67
    • Vaca Muerta development study: Image 68
    • Description
    • Wells drilled by operator by year
    • Formation development assumptions (area potential)
    • Vaca Muerta development study: Image 72
    • Vaca Muerta development study: Image 73
    • Description
    • Wells completed by operator by year
    • Formation development assumptions (area potential)
    • Vaca Muerta development study: Image 77
    • Vaca Muerta development study: Image 78
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