The Risk of Risking Unconventional Plays Conventionally

Unconventional plays require a unique rationale to address geologic uncertainty, deliverability and commerciality that differs from the approach that is commonly applied to conventional plays. As the presence of hydrocarbons is commonly known to exist as a resource before wells specific to the play are drilled, operators can wrongly assume a certainty of geologic conditions and commercial outcome. Initial wells for unconventional plays should be drilled to measure reservoir characteristics to determine if the play should advance to testing for deliverability. Once deliverability is established then typically a commercial pilot program is initiated and if this is encouraging a full stage commercial development follows.