Spend a few minutes reading, and you can learn how other companies have successfully employed WellDog's technical reservoir evaluation services to increase their booked reserves and production profitability while reducing development risk. For examples of these value propositions in action, please refer to our case studies here.

 

Focus your staff on developing the resource, not the field
One of the most important steps in profitably developing natural gas from coal is spending your capital developing the gas, not just drilling wells and producing water. CBM is a heterogeneous resource and techniques and methods developed for homogeneous conventional reservoirs do not apply. It's a simple situation:

 

  • » CBM reservoirs are highly heterogeneous
  • » Detailed data is required for accurate reservoir evaluation
  • » Accurate reservoir evaluation enables better development decisions
  • » Better development decisions result in more gas production, faster, with less water and infrastructure costs
  • » Increased revenues and reduced costs creates a more profitable, stable business

 

Operators that have not realized these facts have seen exploration failures of 50%+. Many CBM wells being drilled today in both established and emerging basins can be avoided and the related time and costs retasked to areas containing economic gas.

 

Increase your company's productivity and morale - find the gas and develop it, deliberately.

 

Reduce your water-gas production ratio and related costs
The economic base model in CBM development is simple: produce more gas and less water. By focusing your development on the producible resource, you will reduce your company's water lifting and handling costs while producing more gas, faster. By establishing the most favorable fundamentals, your company will be better positioned to weather challenges like wildlife stipulations, low netback prices, and completion/production method development.

Prove and book reserves more accurately and quickly
By collecting more data, faster, you can provide your shareholders and auditors a more complete assessment of your reserves. WellDog's data is widely accepted by reserve auditors. With upcoming changes allowing booking of probable reserves, evaluating your reserves before production commences is becoming even more important.

 

Accurately predict development costs and cash flow
When your development is progressing, typical estimates of critical desorption pressure and gas content allow for significant variation in time-to-gas, gas production rates, and compression costs and timing. By using more reservoir data, and more accurate data, in your production and cash flow models, you can increase your planning horizon and avoid the capital crunch and shareholder inquiries that occur when other companies' low probability models inevitably turn out to be wrong.

 

Evaluate asset values before purchase or sale
Whether you're buying or selling, using one core per township to establish a value of a property leaves everyone feeling uncertain. Reduce the transaction risk, set a fair price and close the deal. We regularly test gas content and producibility for both leaseholders and their acquirers. In some cases, our costs can be bundled into the transaction in order to backload the testing costs.

 

Justify development scale and impacts to regulators
As coalbed methane matures, regulatory agencies and other watchdog groups need to understand why producing natural gas from coal is a positive social, environmental and economic activity. There's no better way to engage those stakeholders than by demonstrating your commitment to high success rate development and increasing development efficiency. WellDog not only can help you achieve this, we also are ready and willing to go to bat for you and your development when the need arises. We believe in CBM, and we can help others believe in it, too.