Select Sands Corp. (SLSDF)

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Bakken Update: Significant Oil Production Increases Seen In Subpar Bakken Geology Due To Mega-Fracs

Summary

Enhanced completions continue to improve initial production rates in US unconventional plays.

Mega-fracs were only used sparingly in 2015, but still improved 270-day production year over year by 22%.

As oil prices improve, we will find that improvements in well design provide a much larger footprint of development in US plays.
If correct, production increases could be much more substantial at lower prices than analysts expect.

Mega-fracs continue to improve unconventional production in the US. The changes to well design are significant, and many do not understand how much it may be changing the world oil markets. OPEC has tried to crush the US oil business, and spent a significant number of calendar days during this process. In the past, the Saudis had done an excellent job of evaluating breakeven prices of other plays. As the low cost producer of crude, it used this to push others out of business when too much production entered the market. I'm not saying this is wrong or right, as I believe in supply and demand. The point I would like to make, is this may not work. Current technologies are improving oil extraction at a much faster rate than anyone has expected. We believe this will continue for several reasons. If oil prices remain low so with the US Oil ETF (NYSEARCA:USO).

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Source:

http://seekingalpha.com/article/4004358-bakken-update-significant-oil-production-increases-seen-subpar-bakken-geology-due-mega-fracs

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