Monthly Archives: December 2014

Improving Project Salability During “Interesting Times”

 

Introduction

The market for SWDs is almost saturated with newly permitted sites; these are especially common in the tite-oil universe of Eagle Ford, Permian, etc. If you have a new permit, what factors will influence investors and operators for picking your prospect? If you are an investor, what ought you look for when evaluating a new SWD site?

Location

Location is always important in any market and it’s particularly true for commercial disposal wells. Particularly important is the presence or plans for salt-water pipelines in the area. The proposed SWD needs to be part of any existing or future pipelines. Contracts with area producers will greatly enhance a proposed SWD. 

CAPEX Summary

CAPEX forecasts can be made “water-tight”by including current firm quotes from… Continue reading