Profitability of production from low permeability gas reservoirs is mainly determined by the increment of production obtainable by hydraulic fracturing as well as by the initial flow capacity of the untreated well.

In this paper a method is presented, which allows a judgement of profitability of low permeability gas production on the basis of log-analysis and well-testing data only.

Deduced from reservoir models production profiles for an untreated and a fractured well, respectively, are calculated. To these production profiles basic profitability analysis are applied, considering

  • drilling and completion costs

  • surface treatment installations

  • MHF-treatment charges

The limiting value of profitability is characterized by a dcf-rate of 15 %.

On the basis of economic considerations, limiting values for reservoir properties are determined as requirements for a profitable stimulated or non-stimulated production from low permeability gas reservoirs.

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