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Case Study

Field development strategic planning

oil well in field

Advisian was retained by the client to assist with strategic planning of two separate Greenfield unconventional oil and gas assets in the Eastern USA (both Marcellus and Utica Shales).

The Situation

The client required a solution for the field which would address several focus decisions, including:

  • How changing field development pace (rigs/year), scale (final well count) and well laterals impacted the economics and footprint
  • The appropriate degree of hydrocarbons and water facility centralization
  • The optimal water sourcing option
  • The benefits of using simultaneous drilling and production at well pads
  • Pursuit of stacked pay options
  • Finding the cost and risk tradeoffs of trucking vs. piping liquid products and water

Approach

Advisian worked with the client’s internal stakeholders to implement a structured, transparent decision analysis process.

Using an expanded economic analysis, external drivers such as traffic impacts, land disturbance, emissions and local economic benefits were monetized and included in cost benefit models. The economic analysis included data inputs from the client’s existing studies along with engineering inputs from Advisian’s hydrocarbons and water facilities engineering teams.

Results

Outcomes of the two projects included:

  • Identification of optimized field development scenarios, leading to improved financial performance and footprint reductions
  • Project economic benefits of $100 million to $300 million when using optimized centralization and stacked pay options
  • Additional indicative external stakeholder benefits of $70 million to $120 million per project
  • Scenario comparisons using several metrics as required (NPV, DPI, cost per well)
  • Cost benefit model outputs successfully integrated with client’s existing decision models.
  • Capability to integrate with client’s existing economic software (e.g., Enersight).

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