Summary
Appraisal and drilling costs, reserves, reservoirs productivity are important issues that may compromise overall return
Analysis
Costs of appraisal, production and shipping is an important aspect of this production segment. Safety of production from deep shale may demand in fact higher drilling and completion costs and far more accurate appraisals because of pressure and overpressure regimes.
Gas reservoirs of this type are also often difficult to estimate in terms of reserves. The overall investment without proper upfront appraisal expenditure may be too risky and unproductive, lack of reserves will compromise field return. Only opportunity short mid term is for servicing appraisals.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
