Operations
Operations

As the formation is depressurized over the life of the well, the Btu content of the hydrocarbon production stream increases.

Development of Our Conventional Resource Plays

Once a well is completed and brought online, hydrocarbon production increases for the first three to seven months. During this time, fluids in the naturally occurring fractures are vacated utilizing electric submersible pumps, allowing the hydrostatic pressure in the reservoir to be lowered, which in turn enables the hydrocarbons to expand and vacate the pores in which they are trapped. It is at this time that peak production rates, which can average more than 200 Boe per day, are observed and sustained for periods typically in excess of 12 months. During the latter stages of the well life, the electric submersible pumps are replaced with beam pumps that are less expensive to operate and maintain, resulting in additional cost efficiencies. The average production life of our wells in the conventional resource reservoirs is 18.5 years.

As the formation is depressurized, the Btu content of the hydrocarbon production stream increases. Over the life of the well, this creates greater volumes of condensate and natural gas liquids per Boe produced.

The decline of saltwater volumes produced is similar to the decline of hydrocarbon production following the peak production period. This reduces operating costs over time, in turn extending the economic life of the well and maximizing the hydrocarbon recovery from the reservoir.

Conventional Resource Reservoir Well Curve
Low Exploration / High Recovery Factor