Have signed a lease on 320 acres 35N-52E. I just read on oilslick.com that:
"The depletion of a Bakken well is very fast with production falling to 50% within 5-years. Depletion rates of up to 60% per year have been reported. This is shale oil NOT a reservoir like we see in Texas, Louisiana, or Saudi Arabia."
That seems pretty harsh; is it true?
-Toby
This was written in December of 2009. Were they doing horizontal fracking then?
And this from March 21, 2012
"There is still more -- fracked wells don't keep producing very long. Although a few newly fracked wells may start out producing in the vicinity of 1,000 barrels a day, this rate usually falls by 65 percent the first year; 35 percent the second; and another 15 percent the third. Within a few years most wells are producing in the vicinity of 100 b/d or less which is why the state average for January is only 82 b/d despite the addition of 1300 new wells in 2011."
From FCNP.com: http://www.fcnp.com/commentary/national/11418-the-peak-oil-crisis-p...http://www.fcnp.com/commentary/national/11418-the-peak-oil-crisis-p...
Toby:
I've been following Bakken well productions since 2008 and it is evident that no two wells are alike in their decline rates. I have read figures throughout my dealings with the Bakken, some are close while others are completely wrong. The only sure thing is the royalty you recieve and good rule of thumb is not to make long range plans based on your current royalty amount. All wells of course will decline but where it levels off and for how long is strickly predictions.