Industry’s unawareness of the true impact of well interference in full field development scenarios across the U.S. unconventionals has led to some painful financial lessons across operator asset bases. Aggressive well spacing estimates fueled valuations that are now being adjusted downward as programs are failing to deliver on the full promise of the areas under development.

These well interactions are robbing resource across multiple well bores and prompting operators to upspace future unit drilling plans, which is having a finance ripple effect across all parts of the industry. Now that Wall Street has caught up to the problem, companies valuations are suffering.

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