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Excellent White Paper on Akita Drilling


Parsad
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I'm no expert, but I believe pad rigs are used when several holes are to be drilled in close proximity.  The rig is self-mobile, and can crawl around on a prelaid concrete pad.  A conventional rig has to be moved, between widely spaced drilling locations, and there are costs, as well as issues with roads (cannot move during soft-roadbed times of year, eg spring).  Pad rigs can achieve higher utilization rates, or seen from perspective of the customer, lower total cost per quantity of drilling performed.  Would appreciate additional clarification from someone who knows their stuff; the above is just what I've gathered from misc reading.

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Another article that may of interest in connection to this: http://oilandgas-investments.com/2010/latest-reports/2012-outlook-for-canadian-natural-gas/

 

Quote:

 

Western Canadian gas exports to the United States could be completely displaced into Northern California by

1.      Abundant, low cost US natural gas production, and

2.      By several new gas pipelines in the US…

Says a new market study by Bentek, a US energy analysis company.

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PAD rigs have an advantage in shallow shale fields where the formation is tight & you want a lot of holes drilled cheap, in fairly close proximity, & where they can be easily fract. Alternative directional drilling is more costly & really more cost effective at the medium & deeper depths.

 

The good news is that shale fields deplete quickly, & the more holes the higher the depletion rate; to keep up production you have to keep drilling. Low gas prices may highlight their competitive advantage, but they also reduce the size of the industry drilling budget & increase competition.

 

At some point they will entertain a take-out bid. That said, they like what they do, they do it well, & there is no compelling rush.

 

SD

 

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