Cost Metrics

We are all faced with a new challenge of doing business with low gas prices.

Our patented skid designs are created to meet this need. 

We offer cost-saving solutions for all applications including:

        • well pad processing
        • well pad booster compressors
        • central gathering system compressor facilities.

 

Turnkey” Skid Cost Metrics

Using a budgetary cost, a Producer may be paying $0.50 per MMBtu for Midstream fees (for gathering, dehydration, and compression).  Purchasing or leasing a “Turnkey” skid allows a Producer to eliminate these costs.  A “Turnkey” skid will pay for itself in a matter of a few months in operation.  Save millions of dollars per well pad – per year.  This provides cash to help sustain drilling costs and production needs.  Contact us for leasing options (less capital, write off expenses = additional savings).  

For Midstream customers, the historical cost for small site installations is ~$3500 + / HP installed (leased compressor).  Typically, different systems are installed for free flow and compression.  Most of these systems are “brick and mortar” sites where the equipment is fixed in place with buried pipe, etc.  Installed costs for the “Turnkey” system site are ~$1400 / HP.  This includes the cost to purchase (vs. lease) the system.  That is a savings of more than HALF compared to current design / build practices.

  • Do not spend more $$ and time developing and permitting a new site – use your existing well pad. The “Turnkey” skid system is a very compact package – one was installed on a well pad prior to drilling and fracking!
  • This system can be less expensive to install versus running a gathering line to your central compressor facility.
  • Once you are done with the skid system at the current location simply pick it up and re-use it at a new site.

 

Expansion” Skid Cost Metrics

The historical cost average of 14 sample Marcellus central compressor facilities is ~$3100 / HP (using leased compressors).  This metric is based on a data sample that includes a total of approximately 145,000 HP using all sizes of compressors.   The site built with our “Expansion” skid cost ~$1400 / HP.  This cost includes Client costs to purchase the “Expansion” skids, purchase of a 1000-acre site, install micro piles due to unstable soils, etc.  Like the “Turnkey” skid above, cost savings using the “Expansion” skid are more than HALF compared to similar sites built using current design / build practices.

  • Start developing an area (flow gas) with just one skid, one compressor. Grow the site as new volumes become available (up to ~225 MMSCFD).  Move skids and compressors to new sites when your needs change.
  • Drastically reduce your risk and costs by minimizing your Field time. Phase 2 with over 8,000 HP of compression (3 each CAT-3608) was added in less than six (6) weeks.
  • Contact us to discuss leasing options for even more cost savings!

 

A new way of looking at development plans

Current development planning relies on sites with many compressors (“centralized compression”) to help justify the high costs of installing compressor facilities.  The high costs are also reflected in the fees charged for Midstream compression and dehydration services.  With current commodity pricing, these fees can often make development of an area cost prohibitive.

The “Turnkey” skid solution allows you to cost-effectively flow gas from a single well pad, including isolated wells that do not fit well into centralized gathering systems.  The small, low cost skid can be installed with minimum site development.  Performing compression and dehydration on the well pad also offers a drastic reduction in operating costs and headaches related to current wet gathering systems.  Pigging requirements, condensate slug issues at facility inlets, etc. are all mitigated by running a dry gas discharge from your well pad.  Reduce your outages and associated revenue losses. 

The “Expansion” skid system lets you start operation at a site with a low initial cost.  You do not need to spend capital on infrastructure for future “what if” volumes that may or may not occur.  The design allows you the flexibility to expand when needed at low, repeatable cost increments per added compressor.  It is now possible to re-think what sites you want to develop since the design provides the same saving opportunities for ALL site sizes.  

Start with a small gas volume in an area and use the revenue stream to pay for additional development.  When added gas volumes are brought on line you can expand your site with a known, low fixed cost.  There is no need to wait until you have high gas volumes to fill a large block of compressor HP just to make your facility cost efficient.  You now have new options that change when and how you can develop an area.

Our skid solutions offer reduced costs, simplified operation, increased reliability, and lower emissions.  Contact us to discuss costs – we are confident that you will be pleasantly surprised!