05 Sep '12, 1pm

Drumbeat: September 5, 2012

steve - "As Does anyone know if this is Bcf per producing well, or does it include wells that did not produce?" Just my guess but probably just wells from which NG has been sold. Typically any statement that says the average production from certain wells is X doesn't include the dry holes. OTOH wells can be completed and produce that never recover their costs. This is especially true with the shale wells. It's nearly impossible to tell if the shale well you just drilled will be profitable or not even after you just drilled it. You have to complete and frac it and then produce it for at least 6 months to have any idea if you'll make a profit or not. With a conventional well you usually know right when you drilled it whether it's worth completing or not. With the shale wells the operators are essentially committing to produce the well long before they know it's worth produci...

Full article: http://www.theoildrum.com/node/9467

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