Horizontal wells up odds for profit in Giddings Austin chalk
- Centerline Oil and Gas Inc., San Antonio, TX (US)
This paper reports on horizontal drilling in the Giddings field Austin chalk which has significantly improved average well recoveries and more than offset increased drilling costs. Although not the panacea originally promoted, horizontal drilling, in Giddings field, offers economic profits to the average investor. Economic analysis indicates that the typical investor is making money by earning returns in excess of market values. Field-wide development will, therefore, remain active unless oil prices or average well recoveries fall below $12/bbl or 112,000 bbl of oil equivalent (BOE), respectively. The application of technological innovation in the Giddings field may culminate in the drilling of over 2,000 horizontal Austin chalk wells, and has conceivably increased recoverable reserves by 400 million BOE.
- OSTI ID:
- 5892913
- Journal Information:
- Oil and Gas Journal; (United States), Vol. 90:7; ISSN 0030-1388
- Country of Publication:
- United States
- Language:
- English
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