August 3, 2021
Piceance Basin
Piceance full-cycle costs at Henry Hub range from a low of 1.91 USD/Mcf for wells with an Initial Productivity (IP) greater than 12 MMcf/d to a high of 3.65 USD/Mcf for wells with an IP of under 2 MMcf/d. There is no liquids uplift revenue associated with this basin to offset some of the full-cycle costs.
Operating costs range from 0.90-1.08 USD/Mcf while royalties & taxes and overhead represent about 0.67 USD/Mcf. F&D costs range from 0.08-1.08 USD/MMcf and the 15% producer return ranges from 0.04-0.57 USD/MMcf. The Henry Hub differential is 0.24 Mcf/d.
Green River Basin
Green River full-cycle costs at Henry Hub range from a low of 2.83 USD/Mcf for wells with an Initial Productivity (IP) greater than 6 MMcf/d to a high of 12.49 USD/Mcf for wells with an IP of under 1 MMcf/d. To help offset some of the full-cycle costs, there is liquids uplift providing 1.06-0.89 USD/Mcf in revenue at IP’s greater than 6 to under 1 MMcf/d.
Operating costs range from 0.95-1.13 USD/Mcf while royalties & taxes and overhead represent about 0.92 USD/Mcf. F&D costs range from 0.48-6.78 USD/MMcf and the 15% producer return ranges from 0.24-3.39 USD/MMcf. The Henry Hub differential is 0.24 Mcf/d.