Technology for unlocking natural gas and oil from tight shale rock formmation continues to evolve and bring down the costs of shale exploration and development. Lower costs make shale development more competitive and more economic to explore further.
To meet demand for more stimulation stages in horizontal wells, Packers Plus launched its new 20 stage StackFRAC(R) HD “High Density” Multi-Stage Fracturing System. The system allows for “increased production through longer laterals and shorter stage lengths; costs are further reduced by smaller frac strings and liner sizes.”
Where only two years ago, major companies exploring shale gas used a price of $6 to $8 for shale gas wells to break-even. The break-even point for most companies is now below $4, and expected to fall further making shale gas (and oil) a very attractive investment proposition for exploration and development companies. Any increase in current prices for natural gas would lead to a profit win fall. It is one of many reasons why companies are investing millions of dollars into shale gas areas like BC’s Horn River basin.
The average conventional gas well in Western Canada produces about 250,000 cubic feet of gas a day. Major producers like EnCana Corp. and Exxon Mobil are reporting initial results from their Horn River wells that use multistage technology are coming on at initial rates of 11, 18 and 20 million cubic feet per day. In addition, shale gas wells are usually lower pressure, and longer life as compared to conventional wells. With upfront costs coming down with technology innovations like Packer Plus’ StackFRAC system, the economics will continue to attract investment capital to shale gas, and the Horn River basin.
Bill Gwozd, a gas supply analyst for Ziff Energy in Calgary is quoted:
“If you can get more bang per well, it becomes more efficient to exploit and root out the basin. We’re bullish, but some producers are even more bullish than that.”
PR Newswire: Packers Plus launches new 20 stage completion system
* Recommended reading – Calgary Herald: Packers Plus leads drilling revolution