Thomas Patrick 1-12H, NENE 1-154-91
Operator: Murex
Long lateral
89,000 bbls/first 91 days
At $60/bbl = $5.34 million at the wellheadSome producers hedged oil contracts for 2010 at $80 back in 2009.
At $70/bbl = $6.23 million at the wellhead
At $80/bbl = $7.12 million at the wellhead
This well is paid for in 91 days. At least one producer calculates expected ultimate recovery over twenty years, out to 2029.
Yeah, I'm still irrationally exuberant.
And after I wrote the above, I find out that there is another well on the same spacing unit that has produced 144,000 bbls of oil in its first 7 months
At $60/bbl = $8.64 million at the wellheadClifford Gene 1-12H, Lot 4 1-154-91
At $70/bbl = $10.08 million at the wellhead
At $80/bbl = $11.52 million at the wellhead
File number, 17841.
Operator: Murex
Long lateral
48,000 barrels in first 92 days
Together these two wells, again, on one spacing unit: produced a combined 137,000 barrels of oil in the first 90 days of combined production. At $80/bbl, this is almost $11 million from these two wells. They are now paid for, and one producer has opined that expected ultimate recovery from the Bakken may last through 2029.
Yes, I am very aware of the decline rates, and 20 years from now, if these wells are even operational, they will probably be "stripper" wells -- but who is to say what the technology will be then?
Reminder: I own no mineral rights. I am not a broker. I have no ties to the oil industry. I make no investment recommendations. I simply enjoy watching my home town news. And I'm inappropriately exuberant.
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