EOG Parshall Field Well On Track To Produce Revenues Over $100 Million -- Mike Filloon At SeekingAlpha
Mike Filloon looks at
the Parshall oil field at SeekingAlpha:
These numbers are incredible when you look at the best and worst wells
on the list. These wells, using today's values ($90 WTI and $4 natural
gas) have produced significant profits. Some wells have already produced
over $50 million in revenues.
Well #16795 was over $52 million, and by
my estimates should double this over the life of the well. This means
this is a $100 million short lateral, with well costs of $5.5 million.
Even its worst results are good. Well 1#6164 has only produced
approximately $16 million in revenues over the course of 9 years. Even
this result is considered good, and will probably have revenues of over
$20 million over the life of this well.
In summary, Parshall Field is the best acreage in North Dakota. This
geology coupled with EOG's well design has produced wells that are much
better than the Bakken average. It is possible northeast McKenzie County
is as good, if the Bakken and Three Forks wells are also considered.
Even so, Parshall Field has undoubtedly the best middle Bakken pay zone
in the Williston Basin. Even when compared to the best wells drilled
today, Parshall Field's early Parshall Wells are easily better. Some of
this is due to well design, but the geology is the number one reason for
its out performance.
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