August 3, 2021
Duvernay full-cycle costs at Henry Hub range from a low of 2.62 USD/Mcf for wells with an Initial Productivity (IP) greater than 6 MMcf/d to a high of 15.36 USD/Mcf for wells with an IP of under 1 MMcf/d. To help offset some of the full-cycle costs, there is significant liquids uplift providing 1.79-1.50 USD/Mcf in revenue at IP’s greater than 6 to under 1 MMcf/d.
Operating costs range from 0.68-0.81 USD/Mcf while royalties & taxes and overhead represent about 0.26 USD/Mcf. F&D costs range from 0.60-8.42 USD/MMcf and the 15% producer return ranges from 0.37-5.13 USD/MMcf. The Henry Hub differential is 0.74 Mcf/d.