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