Shut In Effects On Reserves: A Conversation w/ Netherland, Sewell a Associates, Inc

A wonderful conversation with the expert at Netherland, Sewell a Associates, Inc and John Cliver (Vice President) and Rick Talley (Senior Vice President) Key takeaways: Production curtailment and shut-ins could have impacts on a company's reserves, but not as much as you might think. Pricing assumptions used in reserve reports will vary, so value impacts will be varied as well. Not all wells that are shut in will respond the same on re-activation. They reviewed 550 wells  in the Balkken and 90% came back right on or above the rates prior to shut in. Taking a look at historical shut ins in a more detailed review of individual wells verified the 30,000 foot view. Upon restart NSAI expects some additional costs associated with deferred well or field repair costs to account for in cash flow projections. Not all wells that are shut in will respond the same on re-activation. Slide deck via: https://www.oilandgas360.com/exclusive-360-energy-expert-network-video-interview-netherlandsewel/  

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