The cost to drill, case and complete a horizontal well in Alberta's prolific Cardium formation dropped significantly this year compared to the prior winter drilling season.
That assessment is based on new well-cost data researched for PSAC's Well Cost Study for Winter 2016. Click here to access the latest study, comparative history and sample data. It includes cost estimates for multiple well types across several Canadian regions and formations.
Cost estimates specific to the Cardium formation, for example, can be seen through three typical horizontal wells in two different PSAC regions (see map below):
> AB2E – Foothills Front; West Pembina area; total measured depth1 3,200m
> AB2F – Foothills Front; Garrington area; total measured depth 3,600m
> AB5F – Central Alberta; Pembina area; total measured depth 2,600m
All three type wells, AB2E, AB2F and AB5F, have seen total drilling, casing and completion costs drop by 6% this winter compared to last. The largest cut in costs, on a per metre basis, was at the well in the Garrington area, the deepest(1) of the three Cardium type wells in the study.
Source: PSAC Well Cost Study, powered by CanOils – find out more.
Reduced costs for drilling/casing are the primary cause of lower, overall Cardium well costs. For example, in the AB5F Cardium type well in the Central Alberta PSAC region, drilling and casing costs fell by 7%, while completion costs only dropped by 2%.
Drilling and casing costs are comprised of multiple items and the price estimate of each component is accessible within the PSAC Study.
Looking closely at the AB5F type well cost estimates, we attribute the 7% fall to lower casing and cementing costs, which fell by 22%, and rentals, which fell by 29%. Two components that make up the PSAC drilling and casing cost estimate actually increased this year for this AB5F Cardium well, namely construction and rig contract costs.
Source: PSAC Well Cost Study, powered by CanOils - find out more.
All components of drilling, casing and completion costs for 50 type wells across Canada are provided in the PSAC Study.
“The data includes multiple well types and completion strategies, allowing quick comparison of the prices involved for all well cost services,” said Bemal Mehta, senior VP Business Intelligence at JWN Energy Group. “As well as detailed wellbore graphics for every representative well, data on more than 100 drilling and completion cost components is available.”
Click here to access the PSAC Study and sample data.
1) Total measured depth (m) is the total combined vertical and horizontal length of the wellbore.
PSAC Region Map, AB2 and AB5:
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