Hydrocarbon experts, please educate me about well depletion

[Xisiqomelir]

Specifically, is it generally correct that rock porosity and well longevity are directly correlated?

I ask because I am evaluating a short sale of what is possibly an overvalued Bakken Shale producer (Northern Oil and Gas).

[Sea Skimmer]

They are correlated are but other factors are involved. The more porous the rock the more easily oil can drain into the well bore. How vicious the crude oil is also has a significant effect on well output. Lighter grades of crude flow far more easily then the heaviest tar like crude oil.

When you drill down into an oil deposits, initially the deposit has natural pressure which physically forces oil out of the well. Over time that pressure reduces until eventually you have to start pumping the oil out. At that point the oil can only drain into the well so quickly no matter how hard you pump and slowly this rate goes down as you deplete all the oil around the well bore. Porous rock makes it easier for the oil to drain out, and it can make for a richer oil deposit, but it still doesn't make an oil well an infinite money machine. If your talking about serious money in this sale you should talk to a real oil expert.