Are Your Idle Wells Costing You More Than You Think?

Many companies choose to leave wells idle for years for many sound business reasons. However, if you are simply leaving wells idle to “kick the can down the road” to delay abandonment expenses, it could be actually costing you more money down the road and even impact your current cost of production (COP). Cost impacts that should be considered in developing your well abandonment strategies include:

· Maintenance and regulatory testing costs

· Potential changes to regulatory requirements

· Increased liability due to environmental impacts or leaks from accidents or acts-of- God like earthquakes, hurricane, floods or tornados

· Increased abandonment costs due to deteriorating downhole and surface

conditions and equipment

· Rising Asset Retirement Obligations (ARO) for non-revenue generating assets

A thorough inventory and evaluation of your idle well assets should be part of your well abandonment strategy to determine if increasing your abandonment budget could lower your ARO and COP. CRG Oilfield Abandonment LLC can help you with this evaluation and budgeting strategies.