November 4, 2024
Montney oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $47.56/Bbl for wells with an Initial Productivity (IP) greater than 1200 Bbl/d to a high of USD $141.90/Bbl for wells with an IP of under 300 Bbl/d. Average Operating costs USD $9.59/Bbl while royalties & taxes and overhead are USD $11.92/Bbl. F&D costs range from USD $8.66-$72.18/Bbl and the 15% producer return ranges from USD $4.20-$35.02/Bbl. The assumed WTI differential is USD $13.18/Bbl.
Full-Cycle Cost Curve
Incorrys analysis shows that there is 850 MMBbl of oil resource available below USD $50/Bbl and 1,800 MMBbl available below USD $60/Bbl. Current production (2023) was 51 MBbl/d (18.6 MMBbl/yr).
Montney Basin Location
Montney wells are located from south of Grande Prairie, Alberta north to Dawson creek and extending into BC south of Ft. St. John.
Number of Drilling Locations
Incorrys estimates that Montney has over 9,000 drilling locations with productivity greater than 300 Bbl/d and 35,500 drilling locations with productivity below 300 Bbl/d.