Title : Daily Activity Report -- Pending -- October 26, 2017
link : Daily Activity Report -- Pending -- October 26, 2017
Daily Activity Report -- Pending -- October 26, 2017
Statoil earnings cal, 3Q17: link here. From Q&A:Q: ... some of your competitors called things like train wreck wells with that tighter down spacing in Eagle Ford and whether there's some extra CapEx that will drop out and not be spent going forward?
A: ... on the well spacing and the change of CapEx, it's too early to conclude, we have changed the well spacing to a wider space of 500 feet
Q: ...related to the Eagle Ford downgrade, I think there's some concern in the market over your relatively low reserve life. I'm guessing that's going to fall further on the back of the Eagle Ford downgrade to reserves. So just how you're kind of thinking about that reserve life within that context as well?
A: (does not answer the question; too early to tell) ... In terms of reserve life, on a portfolio level, we like to talk about the next generation portfolio with an excellent breakeven, it's $27 on average, short payback time 2023, IRR 20%, you heard me say this before. So we're not worried about that. On Eagle Ford, this is part of what we are assessing based on the change and the improvement work we're doing.
Q: ... impairments
A: ...The largest impairment of $0.85 billion is specifically on Eagle Ford. This was triggered by lower than expected production volumes, but the impairment in itself is calculated based on our market valuation.
Q: ... impairments
A: ... So the history we're coming from is that both in this quarter and in previous quarters, we've had impairments and reversals. And the largest one in this quarter is Eagle Ford. So, this is due to the trigger of reduced production rates. As part of the industry, we started a year ago to do tighter well spacing 200 feet to 250 feet. We had great faith in this measure of course, so we actually reversed based on the plans and the indicative results, that didn't turn out to be as favorable as we hoped for. So we have, of course, stopped that practice and are changing it.
This is an Eagle Ford issue as it has been for the industry with tighter well spacing. So based on that, we did a valuation, third-party market assessment and we have started working out an improvement plan. So, we have moved from 200 feet to 250 feet well spacing to 500 feet. Very early days, too early to conclude, but the indicative result so far is in the positive direction. So, this is something we will come back to. So, as I said, there is uncertainty in valuation and reserves. So that's why we have these changes
**********************************
Back To The Bakken
Active rigs:
Eight (8) new permits:
Operators: Hess (6); BR; Ballard Petroleum
Fields:
Comments:
CLR renewed four permits:
Five permits canceled:
One DUC reported as completed:
33499, 593, Oasis, Osprey
Thus Article Daily Activity Report -- Pending -- October 26, 2017
That's an article Daily Activity Report -- Pending -- October 26, 2017 This time, hopefully can give benefits to all of you. well, see you in posting other articles.
You are now reading the article Daily Activity Report -- Pending -- October 26, 2017 with the link address https://mylivemyidea.blogspot.com/2017/10/daily-activity-report-pending-october.html
0 Response to "Daily Activity Report -- Pending -- October 26, 2017"
Post a Comment