My question is regarding a horizontal frac well in Texas: At what point does a company decide a well isn’t worth operating anymore?. For instance, if a well produces only 5 barrels of oil a day, will the operator shut it down?.
It depends upon the operator and their overall economics. An operator wants the payments from selling the products to be equal to or greater than the cost of operations for running the well. Bigger companies can afford to keep low performing wells on line a bit longer if they have other wells that can compensate. Each company has their own criteria for plugging a well.
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