In a recent report, the IHS revealed that Eagle Ford producers have built a large inventory of over 1,400 wells that have been drilled but not completed.
Drilled but uncompleted wells (DUCs) offer an attractive economic alternative for producers who are looking for ways to cut costs in this crude pricing slowdown. A DUC can be converted to a producing well for 65% of the cost of new drilling, which will likely incentivize operators to work through these inventories as oil rices rebound.
BHP, Chesapeake, Anadarko, EOG Resources, ConocoPhillips and Pioneer Resources own nearly 40 Percent of the optimal DUC wells in the Eagle Ford. The report estimates that BHP, ConocoPhillips and Pioneer Resources have better potential in their delayed wells and the greatest available options of any operators in the play.
Raoul LeBlanc, senior director of research at IHS Energy, said the drilled but uncompleted wells have two advantages under current market conditions.
Read more at ihs.com