By OGJ editors
HOUSTON, Jan. 25 -- South Texas natural gas wells examined in a recent study are losing productivity, and rising costs of materials and labor are driving up operating costs, according to Ziff Energy Group.
The average well productivity of the fields studied fell by 25% during 2000-05. The 2005 average operating expense was 98¢/Mcf equivalent vs. 59¢/Mcf in 2000.
Ziff's South Texas benchmarking study included production primarily in Texas Railroad Commission Districts 2 and 4. Seven operating companies provided data on 25 fields in the study.
The fields analyzed produced 1 bcfd from more than 2,400 wells. Total annual operating costs of the fields came to $250 million.
