November 2, 2024
Clearwater oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $43.02/Bbl for wells with an Initial Productivity (IP) greater than 1200 Bbl/d to a high of USD $85.04/Bbl for wells with an IP of under 300 Bbl/d. Average Operating costs USD $11.21/Bbl, while royalties & taxes and overhead are USD $12.91/Bbl. F&D costs range from USD $2.74-$22.87/Bbl and the 15% producer return ranges from USD $2.98-$24.87/Bbl. The assumed WTI differential is USD $13.18/Bbl.
Full-Cycle Cost Curve
Incorrys analysis shows that there is 1,750 MMBbl of oil resource available below USD $50/Bbl and 2,500 MMBbl available below USD $60/Bbl. Current production (2023) was 300 MBbl/d (110 MMBbl/yr).
Clearwater Basin Location
Clearwater, located in eastern and north-central Alberta, is the fastest growing oil play in Western Canada. Currently, most production of crude oil and lease condensate in Western Canada, not including oil sands, is coming from Clearwater.
Number of Drilling Locations
Incorrys estimates that Clearwater has almost 3,900 drilling locations with initial productivity above 300 Bbl/d and over 8,000 drilling locations with initial productivity below 300 Bbl/d.