Oily Stuff

Courage under fire, an RE speaks the truth about over-drilling sweet spots in tight oil plays; something we've been saying on OSB for years...

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"Imagine for a second you are an investor. The type curves are showing incredible returns, yet the company is not making tons of money. Type curves are simple enough, you think, which means the next step is to go make your own. In doing so, you are likely to reach a different answer that is less optimistic. Wouldn’t you then feel deceived?"

There is an easy way to gain intuition around what is happening in the simplified model (Fig. 2). In general, a single well’s highest NPV is at the greatest well spacing, while its lowest NPV is at the tightest well spacing.

If you were hoping to read the article on the 

right, its behind a pay wall but the answer is yes, its better to up-space.

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