Updating the MRO re-fracking story.
For those who may have missed the earlier story, here's the link. Slide 14 at the MRO presentation provides additional background. Many of these presentations "disappear" over time.
A reader has sent me several notes regarding the MRO story. I feel very guilty not doing those notes justice -- my poor excuse is I'm traveling and don't stop much to blog.
I will come back to this later. The reader went through the MRO presentation of 3Q14; from slide 9 came up with these wells that might have been potential candidates for re-fracking. It will be interesting, later to compare this list with mine. I will fill in the well data for the file numbers below, later. If I put the file number in bold red, it means it was on my original list (but remember, this list is for 3Q14; my original list was back in July, 2011; a lot has happened between now and then:
16626, 289, MRO, Kupper 34-10H, Chimney Butte, it appears the first frack was open hole, 477,920 pounds sand, t9/07; cum 195K 10/14; another link; re-frack link;
16686, 379, MRO, Shobe 24-20H, Reunion Bay, it appears the first frack was open hole, 511,700 pounds sand, t12/08; cum 161K 10/14; re-frack link; see this post;
16772, 400, MRO, Pennington 41-4H, Reunion Bay, it appears the first frack was open hole, 386,420 pounds sand, t6/09; cum 195K 10/14; re-frack link;
16778, 354, MRO, Jack Pennington 21-28H, Reunion Bay, 0 stages; 524,020 lbs, t8/08; cum 177K 10/14; re-frack link;
16940, 299, MRO, Kupper 43-10H, Chimney Butte, t4/08; cum 168K 10/14; see this link;
17176, see this link;
17314, see this link;
17333, see this link;
17350, 522, MRO, Strommen 14-8H, Killdeer, t10/08; cum 181K 10/14;
17502, 637, MRO, Mark Sandstrom 14-32H, Reunion Bay, t12/08; cum 290K 10/14; see this link;
17537, 503, MRO, David Beck-USA 24-7H, Bailey, t12/08; cum 165K 10/14;
17556, 553, MRO, Debb Stroh 44-11H, Killdeer, t12/08; cum 180K 10/14; see this link;
17753, 553, MRO, Strommen 34-8H, Killdeer, t6/09; cum 193K 10/14; see this link;
17771, 585, MRO, Jay Sandstrom USA 34-3H, t3/09; cum 244K 10/14; see this link;
17966,
18042,
18384,
20692,
21466,
22113,
The reader mentioned that MRO re-completed 16 wells in 3Q14.
The reader noted that for one well:
If you have a decline curve model, you can calculate IRRs in a spread sheet, given various cost and estimated prices. I would estimate 17753 well IRR of about 30 percent, given refrac cost of $1.5MM and realized prices of $50/bbl. That is not bad given today's pricing.
