HOUSTON—The U.S. shale industry is more mature than some think, according to Gulfport Energy CEO Dave Wood.
“From the start of the [U.S.] shale revolution to today, there hasn’t really been a new basin found in the last five years,” Wood said. “There are a few new horizons people are playing with in some of the known basins,” but the quality doesn’t match that of basins further along in development or those that have reached maturity.
Plus, the amount of available core acreage is shrinking.
“I think lots of people in our business say ‘Hey, I’ve got the core. I’ve got the core of the core. I’ve got the core of the core of the core, and my core is better than your core,’” Wood told those gathered recently for the AIPN International Petroleum Summit.
But in his opinion if the acreage doesn’t deliver more than 4 billion cubic feet equivalent (Bcfe) per 1,000 ft drilled, then it is not Tier 1.