This chart shows Duvernay Gas Resource and 2016 Break-Even Gas Price Distribution. Producers in the Duvernay have focused on developing the northern part of the condensate-rich sweet-gas play, which has one of the lowest break-even gas prices in North America. Currently, development is limited to the narrow condensate window in the north core area. Here, wells have both high production rates and high condensate yields.
Evaluation of the southern portion of the Duvernay play has lagged the north, due in part to the ongoing infrastructure development and the more exploration-oriented context of this area. Drilling costs have been reduced significantly, with efficiencies and technology enhancements in drilling and completion techniques.
The map on the right illustrates the hydrocarbon distribution in the Duvernay play ranging from dry gas (blue) to the southwest and oil (olive green) to the northeast. The figure also identifies the developing north Duvernay gas-condensate core area.
The top left chart illustrates Solomon’s assessment of the break-even gas price of the remaining Duvernay gas-condensate, rich-gas, wet-gas, and dry-gas resource, estimated from the supply cost analysis of this play.