A consortium of resource companies required independent expertise to review more than 1 million acres of opportunity. The purpose of the assessment was to determine whether it was plausible to describe the stratigraphic zone as a potential shale/tight oil reservoir and, if warranted, to provide a volumetric assessment.
Project Highlights
- +$100 million investment decision
- Insights based on thousands of hours of engineering and geology analysis
- Informed investment decisions based on independent analysis
- Using the right data cut the decision timeline by +50%
Challenge
- Looking at deploying an investment of over $100 million, a hedge fund identified two resource plays as long-term investments
- Several target companies in these plays were considered, but a direct comparison of future potential was challenging because:
- The plays cover a very large aerial extent, with variable reservoir quality, multiple developable layers and changing fluid compositions
- The companies used different drilling and completion techniques, making it difficult to benchmark
- Techniques have changed over time due to technological advances
Solution
- Sproule compared the developed and undeveloped land base of seven different companies using public data along with Sproule’s Type Curve Analysis database
- Drilling and completion techniques, cost structures and production profiles were compared for each company within each area
- Economic key performance indicators by company and area were compared, and potential future drilling locations were identified
Value
- The forecast results provided the client with the necessary analysis and insights to make an informed investment decision
- By augmenting proprietary data with information from Sproule’s Type Curve Analysis database, the client was able to save significant time and cost
Managing Director, Reservoir Services
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