Mature US plays are being targeted by private equity capital, and each asset offers a different type of opportunity. Terminal decline rates vary widely, and some assets have returns more levered to rising commodity prices and reduced costs than others. In multiple instances, better management of mature wells can offer superior opportunities to undrilled gas acreage. The Cotton Valley may be the best example.
Table of contents
Investor interest in mature plays
Spotlight on six gas assets
Terminal declines aligned with pressure gradient trends
Cash margins look promising
Future investment per well
NPV sensitivities: which plays offer the most upside?
Poised for more mature asset activity
Tables and charts
This report includes 4 images and tables including:
Terminal decline comparison
Total remaining per unit revenue, expenses, royalty and taxes
Cash expense comparison
NPV sensitivity radar plot: new wells versus mature producers