Benchmarking Paradox Basin Performance Among Rocky Mountain Basins and Evaluating Zephyr Energy’s New Completion Performance
In late July Zephyr Energy reported on positive initial production tests from their State 36-2R well in Utah’s western flank of the Paradox Basin. Although the Paradox Basin has a long history of production, it is relatively less developed than other nearby Rocky Mountain hydrocarbon basins. However, recent horizontal wells show promise for expanded development across the basin, with Zephyr Energy’s CEO, Colin Harrington, stating that initial returns from the State 36-2R “are highly encouraging … for the underlying value of our wider Paradox asset base”. Using TGS Well Data Analytics we benchmarked Paradox Basin well performance and confirmed that the Paradox Basin does seem primed for further development.
Figure 1. Rocky Mountain Basin Benchmarking
Figure 1 shows a benchmarking of performance by Rocky Mountain basin. Historically, the Paradox Basin yielded relatively low production until the late 90’s, when an uptick in development brought production closer in line with other Rocky Mountain basins (1A). Monthly aggregate production from recent horizontal wells also puts the Paradox Basin at near average for Rocky Mountain basins (1B). However, when looking at recent horizontal type curves, Paradox Basin wells significantly outperform all other Rocky Mountain basins (1C).
Figure 2. Paradox Basin Overview
Looking more closely at the Paradox Basin, we can see that there is a clear delineation of production on an east-to-west axis, with eastern Paradox wells in Colorado producing at a higher gas-oil-ratio (GOR), and western Paradox wells in Utah producing a more liquid-rich composition (Figure 2). Looking even closer at Utah horizontal wells in the western, liquid-rich section of the basin to better benchmark Zephyr Energy’s new well, we see initial production rates spanning 200-750 BOE/D, and EUR’s spanning 100-800 MBOE (Figure 3). By comparison, Zephyr Energy’s State 36-2R well reported a peak rate of 1,350 BOE/D with constraints, and a fluid yield of 180 bbl/scf.
Figure 3. Western Paradox Basin Well Performance
Ultimately, the initial production reports from Zephyr Energy’s new Paradox Basin well represents a significant performance increase over modern Paradox wells, which also appear to be trending towards outperforming other Rocky Mountain basins.
For more information about TGS Well Data Analytics or to schedule a demo, contact us at WDPSales@tgs.com.
