With 1.5m to 2m net pay, the Lloydminster zone is the least prolific zone in the area. A favourable capital cost per recovered barrel in this zone translates to more favourable capital cost per recovered barrel in better net pay.
The operator of this section proved that viable production was accessible by drilling horizontal wells between depleted vertical wells. The depleted vertical wells provided the drained area diameter needed to estimate the number of re-completion sequences per well, and the average production per re-completion. “Porpoising” trajectories and reservoir heterogeneity affects the length of well in effective pay. Estimated capital cost per recovered barrel represent 100% to 50% of the well in effective pay.
The disparity between Initial Re-completion and subsequent Re-completions is due mostly to the purchase of surface equipment and downhole tubing to reach the Toe of the well. This equipment is expected to last to the end of the final re-completion.