Re-Frac Economics. How much uplift?

This model assesses the production-uplifts and well-level economics of re-fracturing shale wells in the Permian and the Eagle Ford, to improve recovery of previously missed pay. The opportunity is interesting but not quite game-changing.

Economic breakevens are seen at c$45/bbl under our base-case assumptions. The most likely NPV uplift is c$0.5M/well. However higher prices and process-enhancements can unlock $2-3M of NPV10 per well.

Input assumptions are informed by disclosures from Occidental and Devon Energy, the two E&Ps that dominate the technical literature. They are summarised in the ‘notes’ tab. Please download the file to stress-test the assumptions…

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