Sunday, February 2, 2014

Drilling Rig Classification

Just as there is ambiguity around drilling rig classifications between Oil and Gas, there are likely a few surprises in the Rig Type.  The focus on Horizontal rigs, as being highly productive relative to Vertical/Directional in the onshore market, may miss the mark in a few places.  

Ultra Petroleum is an example of an operator with a highly productive set of Directional Rigs.  They drill very quickly, for high EUR wells in the Jonah and Pinedale fields of Wyoming.  

Note the oil and gas rig counts for Wyoming.  Gas rigs are classified directional, so they aren't included in aggregate HZ Rig counts that make the headlines.  But in this case, they are just as productive if not more.