...and the best part is no new drilling is required.. providing of course WTI maintains the current ppb at $50 (or above) ...DUC's will be the focus of many producing companies going forward into 2017.
So? So they'll need a lot of sand to complete those wells.
Luckily for frac sand producers, this requires an enormous amount of sand especially because the number of fracking stages per well have doubled over the last five years.
In addition, one of the cheapest ways of increasing production from oil wells is to increase the amount of sand used.
Doubling the amount of sand used per foot of well has a minimal effect on overall cost, yet can increase the overall rate of return by 40%, increasing the profitability of a well by about $2 million. Economics such as this is why, according to RBN Energy, some oil producers are now fracking wells with five or even six times more sand than they used just a year ago -- as much as 15,000 tons for a single well.
Re-fracking old wells represents an enormous potential market as well. According to Bloomberg, 50,000 old oil wells are candidates for refracking, which costs about $2 million per well. Thus, for as much as 75% less than the original cost of drilling, oil producers have a chance to increase production, cash flows, and maximize their original investments in older wells by utilizing newer and more robust fracking techniques then existed when the wells were originally drilled. Just as with fracking new oil wells, refracking requires frac sand, and the more sand used, the better the productivity per well thus creating a large potential frac sand demand growth catalyst.
Marker:
Select Sands Corp. ( (CLICF)
$0.6338 up 0.0438 (7.42%)
Volume: 227,649
What ever disunites man from God, also disunites man from man. ~~Edmund Burke
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM