Economics : Rates of Return/ IRR

Showing 3 Results


Wattenberg Kersey Area XRL Type Curve at 1,100 MBoe Increased Type Curve from 850 MBoe to 1,100 MBoe in 2017 Approximately 210 currently identified Middle Core (1) locations Base Case Type Well Details Increased inventory driven by 2016 acreage trade 3-Phase EUR: 1,100 MBoe Capital Cost: 4.5MM Drill times average 10 days spud-to-spud % Oil: 32% IRR: 100+% Significantly enhances efficient development of % Gas: 41% PV10: 8.6MM Wattenberg acreage position % NGL: 27% Undiscounted ROI: 4.3 Wattenberg XRL Performance Avg. Lateral Length: 9,500 Payout (months): 9 PDC Wells Drilled Since 2016 in Kersey Focus Area Older PDC Operated Wells Updated Completion & Flowback Economic Sensitivity Comparison of Type Well IRRs and GOR Variability 1,100 MBoe XRL Type Curve 100+% 100+% 96% 51% Not to scale High GOR Low GOR High GOR Low GOR 30% Oil 34% Oil 30% Oil 34% Oil 40 / 2.50 Stress Pricing Upside Pricing(2) (1) Base case pricing assumes 3.14/Mcf NYMEX gas in 2017 and 3.05/Mcf in 2018-2020 and NYMEX oil of 53, 55, 60, 65/bbl in 2017-2020; (2) Upside pricing assumes 3.50/Mcf NYMEX gas and 55, 29 10/3/2017 60, 65, 70/bbl NYMEX oil in 2017-2020.
PDC Energy, Inc.
October 2017

Greeley Crescent Development Area Blended GC Well Economics Core Wattenberg Implied Full-Cycle NPV & IRR Blended GC Mid-Length Type Curve vs Bestway, Per Well at Various EUR and Acreage Cost Fagerberg & Evans Pads Assumptions 500 700 MBOE Type Curve 800 MBOE Type Curve NPV (mm) 900 MBOE Type Curve 450 Bestway Pad (Avg./Well) 700 MBOE 800 MBOE 900 MBOE Fagerberg Pad (Avg./Well) Cumulative Production (MBOE) Evans LL 25k/acre 0.60 2.71 3.43 400 Evans XL 20k/acre 0.80 2.91 3.63 350 15k/acre 0.99 3.11 3.83 300 10k/acre 1.19 3.31 4.03 250 IRR 200 700 MBOE 800 MBOE 900 MBOE 150 25k/acre 15% 33% 41% 100 20k/acre 17% 36% 45% 50 15k/acre 20% 40% 50% 10k/acre 22% 45% 56% 0 0 12 24 36 48 60 Month Note: Strip Price Deck: 2017 = 46.47 / 2018 = 47.95 / 2019 = 48.73 / 2020 = 49.48 / 2021 = 50.39 / 2022 = 51.45 / 2023 = 52.77 / 2024 = 53.66 / 54.53 flat starting 2025 Assumed differentials: oil = 9.00 / gas = 0.25. Full cycle NPV and IRR information assumes 3.75 mm ML lateral well costs. Rate of return and NPV estimates do not reflect corporate, general and administrative expenses. Estimated EURs may not correspond to estimates of reserves as defined under SEC rules. Production volumes reflect to 3-stream equivalent www.srcenergy.com 9
SRC Energy Inc
September 2017

Uinta Basin: CPGs IP Rates and Economics vs. Major US Plays Corporate Presentation CPGs Uinta results vs wells drilled in US plays US WTI Breakeven (IP 30 per 1,000 feet of lateral length*) 350 50 Castle Peak 300 1st. Gen 1-mile Continual optimization of results completions process and 45 IP 30 per 1,000 feet lateral 250 expansion into new zones resulting in top-quartile results Industry average 200 CPG well results 40 150 35 100 30 50 Recent Castle Peak and Wasatch results 0 25 Recent Recent Delaware Eagle STACK Castle Peak Recent Midland North Niobrara Delaware CPG Midland STACK Eagle Niobrara North Wasatch 1- Castle Peak Ford 1st. gen 1- Castle Peak Dakota mile 1-mile mile type 2-mile Bakken Uinta Ford Dakota Bakken Crescent Point Energy (increased well tonnage) % Liquids 90% 90% 70% 63% 56% 90% 90% 84% 81% 72% Recent Castle Peak is based on initial increased tonnage and 2-mile lateral results (IP 30) * Since 2016 Highly competitive productivity and economics Source: Based on data from BMO Capital Markets and internal data on Uinta from Crescent Point Energy 17 Breakeven is defined as the WTI price that equates to a 10% IRR
Crescent Point Energy Corp.
September 2017

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