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Argentina: only the best tight gas wells break even at current gas prices

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Report summary

Operators in Argentina are successfully reversing the Neuquén basin's gas production decline by targeting low permeability tight gas reservoirs.Tight gas production has ramped up considerably reaching 565 mmcfd or 16 million cubic meters per day (Mm3/d) in Q1 2016 representing a quarter of Neuquén basin's output. The large variability in results indicates that tight gas resources in Neuquén will continue to require a statistical development approach. Using type wells and current development costs we determine the formations with the highest well performance and lowest breakevens.

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    Tight gas developments in Argentina.xls

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    Argentina: only the best tight gas wells break even at current gas prices

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Table of contents

Tables and charts

This report includes 24 images and tables including:

Images

  • Estimated wellhead breakeven gas prices at 12.5% discount rate for two EUR levels
  • Neuquén basin tight gas formations
  • Neuquén basin tight gas production
  • Neuquén basin tight gas well count
  • Argentina: only the best tight gas wells break even at current gas prices: Image 5
  • Tight gas wells drilled 2006 – 2015 by IP90 rate
  • A box and whisker diagram gives a sense of performance distribution
  • Distribution of tight gas well IP90 rates by formation
  • Distribution of tight gas well IP90 rates by operator
  • Total's Mulichinco wells IP90 rates
  • YPF and Petrobras Mulichinco wells IP90 rates
  • Lajas vertical well IP90 rates
  • Punta Rosada vertical wells IP90 rates
  • Well cost as a function of formation depth
  • Well cost versus IP90
  • Well cost versus EUR
  • IP90 capital efficiency: well cost relative to production rates
  • EUR capital efficiency: well cost relative to total well recovery
  • Estimated breakeven gas prices at 12.5% discount rate for two EUR levels
  • Type-well breakeven well cost at 12.5%
  • Upper-quartile well breakeven well cost at 12.5%

Tables

  • Argentina: only the best tight gas wells break even at current gas prices: Table 1
  • Estimated well ultimate recovery based on IP90 rates
  • Formation depth and well cost estimates

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