How's the economics work out?
Tough without numbers on cost and some resultant production numbers to calculate reserves.
This is a Haynesville well so the rates are pretty spectacular when initially produced, then a quick decline.
If I was going to guess, the frac job likely cost +60% of the well cost, so we are talking about a well cost of up to $15mm.
One needs a lot of gas to warrant that.
This is not a new frac technique they are describing. Same old way to frac, just a lot, lot more of frac fluids and sand proppant.
The result of this frac job is to increase the fracture surrounding the well to allow more gas to travel through the low perm rock to the wellbore. It would be great if all those fracture were just increasing the density of fractures near the well; however, a lot of them go further out, meaning the drainage area is increased.
Increasing the drainage area is good for the well but may not be good for overall effective recovery of gas on a tract of land.
That is the other side of this equation.: Higher per well rates but lower reserves per acre.