November 4, 2024
Duvernay oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $55.04/Bbl for wells with an Initial Productivity (IP) greater than 1200 Bbl/d to a high of USD $202.17/Bbl for wells with an IP of under 300 Bbl/d. Average Operating costs USD $10.14/Bbl while royalties & taxes and overhead are USD $11.66/Bbl. F&D costs range from USD $13.35-$111.22/Bbl and the 15% producer return ranges from USD $6.72-$55.97/Bbl. The assumed WTI differential is USD $13.18/Bbl.
Full-Cycle Cost Curve
Incorrys analysis shows that there no oil resource available below USD $50/Bbl and 1,600 MMBbl available below USD $60/Bbl. Current production (2023) was 5 MBbl/d (1.8 MMBbl/yr).
Duvernay Basin Location
Duvernay wells are located wells are located southeast of Grande Prairie, Alberta extending as far south as Edmonton and Red Deer.
Number of Drilling Locations
Incorrys estimates that Duvernay has over 9,000 drilling locations with productivity greater than 300 Bbl/d and almost 14,700 drilling locations with productivity below 300 Bbl/d.