Berea Horizontal Oil Economics Compared to ND Bakken Horizontal Oil

Ran some comparisons on economics from the ND Bakken Oil Play versus our Horizontal Berea Oil Play

 

Both Plays are Sourced from Devonian Shales within in the Oil Windows

 

Bakken average well Cost (8.3 to 10.0 million dollars) Avg. $9,150.000.00   9.15 million

Average EUR 665,000 bbl

Producing Life 45 years

Average Pay Out 3 years

based on the data below the average of Bakken wells were much less productive than shown above


Berea Average well cost (600 to 700 thousand dollars) Avg. $650,000.00  650 thousand

Average EUR 40,000 bbl

Producing Life 25 years (per unnamed source may be an average economic cut off)

Average Pay Out (7-10 months) 8.5 month average (verbal unnamed sources)

Average Pay Out doubled to account for any "Spin" 17 months

 

You can drill 14 Berea Horizontals for the cost of 1 Bakken well and enjoy a payback time which is less than half of that in the Bakken.

The EUR's are also recovered in 25 versus 45 years which equates to 1.8 times faster recovery in the Berea.

 

If there was no "Spin" in the payback time reported from the unnamed sources, then the Berea provides more than a 4 to 1 advantage over payback times in the Bakken.

With the time value of money the Berea Horizontal wells should be "Significantly" more economic on a dollar for dollar basis.

One "Significant" additional benefit is that the transportation costs to the refinery should be very low due to short transport distances of 10 - 50 miles in most cases.

 

 

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Permalink Reply by pg guy on February 17, 2014 at 4:47am

Thanks for info, IF.

Permalink Reply by Finnbear on February 17, 2014 at 12:33pm

I think we're going to see similar with horizontal Clinton wells here in OH.

Permalink Reply by Tim Tarr on February 17, 2014 at 4:46am

Here's a map I just found. Had others but file too large.

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Permalink Reply by Markus on February 17, 2014 at 5:25am

I am enjoying this thread and find it very interesting given that I am watching western Washington county, OH along with Athens and Meigs counties in OH.  One question I have relates to the thickness of the Berea Sandstone formation.  The largest "pay zone" I am aware of in the Berea is just over 30' in thickness.  Is this thickness adequate for horizontal drilling?  Or, are there areas where the Berea formation is indeed much thicker?  I have never seen a Berea map showing thickness...

Permalink Reply by IRONFARMER on February 17, 2014 at 7:34am

the Links below will  provide good information

 

http://www.uky.edu/KGS/emsweb/berea_ss/Upper_Devonian_Berea_SS.htm

 

 

http://pubs.usgs.gov/pp/0259/plate-01.pdf

 

 

 

will to upload a partial snapshot the file is about 16 mb so you will have to download it from the usgs site yourself.

The Berea is up to 125' thick with some shale breaks in most logs

 

 

 

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Permalink Reply by Markus on February 17, 2014 at 7:49am

Big help - thanks...good luck with things.

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