A wonderful conversation with the expert at Netherland, Sewell & Associates, Inc and John Cliver (Vice President) and Rick Talley (Senior Vice President)
Key takeaways:
- Production curtailment and shut-ins could have impacts on a company's reserves, but not as much as you might think.
- Pricing assumptions used in reserve reports will vary, so value impacts will be varied as well.
- Not all wells that are shut in will respond the same on re-activation.
- They reviewed 550 wells in the Balkken and 90% came back right on or above the rates prior to shut in.
- Taking a look at historical shut ins in a more detailed review of individual wells verified the 30,000 foot view.
- Upon restart NSAI expects some additional costs associated with deferred well or field repair costs to account for in cash flow projections.
- Not all wells that are shut in will respond the same on re-activation.
Slide deck via: https://www.oilandgas360.com/exclusive-360-energy-expert-network-video-interview-netherlandsewel/
No transcript available.
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