tag:blogger.com,1999:blog-1149283829854298377.post3508369456541309557..comments2024-03-28T00:16:36.326-05:00Comments on The Million Dollar Way (The Bakken Oil Blog): Idle Chatter On Costs Of Completed Wells In The Bakken -- September 20, 2014Bruce Oksolhttp://www.blogger.com/profile/10952652803684625738noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-1149283829854298377.post-38749917016460179702014-09-21T11:48:59.362-05:002014-09-21T11:48:59.362-05:00It would be nice if RBN Energy or Mike Filloon pos...It would be nice if RBN Energy or Mike Filloon posted an analysis.Bruce Oksolhttps://www.blogger.com/profile/10952652803684625738noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-32046248164093272192014-09-21T11:07:08.955-05:002014-09-21T11:07:08.955-05:00You can look at the CLR charts and see slickwater ...You can look at the CLR charts and see slickwater and proppant disaggregated. I think the slickwater (as practiced) has higher costs because of pumping harder.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-8142215808457955632014-09-21T11:02:18.917-05:002014-09-21T11:02:18.917-05:00"Everything" costs more but I do think t..."Everything" costs more but I do think the most costly line item is proppant. I got a cryptic comment the other day on the costs of services for fracking by Halliburton.Bruce Oksolhttps://www.blogger.com/profile/10952652803684625738noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-33707579414167303142014-09-21T10:57:36.727-05:002014-09-21T10:57:36.727-05:00I thought the cost was in the higher horsepower fo...I thought the cost was in the higher horsepower for the pumping.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-61665687745294160252014-09-21T10:43:12.805-05:002014-09-21T10:43:12.805-05:00Wow, I appreciate that.
I posted the other day t...Wow, I appreciate that. <br /><br />I posted the other day that I don't put much stock / I don't put much faith into what corporate presentations say their completed wells cost. I said there it was impossible to know the operators were including in their costs. When saying a completed well costs $10 million, there's just too many variables to consider, and too much opportunity for shenanigans, as it were. <br /><br />I post what operators are saying, and I link the sources (generally). For me, the figures are only a ball-park number. Compounding the problem, is comparing the cost of wells targeting different formations (Bakken, Spearfish, Madison) and then comparing the cost of wells in various parts of the Williston Basin, even the same formation. <br /><br />Very nice comment; thank you for taking the time to write. Bruce Oksolhttps://www.blogger.com/profile/10952652803684625738noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-415780351559254262014-09-21T10:17:47.724-05:002014-09-21T10:17:47.724-05:00Slickwater fluid systems do not cost more than Gel...Slickwater fluid systems do not cost more than Gel fluid systems. The cost of Gel, and the other 4 or 5 Chemicals used to create a crosslinked Gel Fluid, is much more expensive then simply running Friction Reducer, Bio & Clay Treat chemicals in a Slickwater Fluid system. Some of these companies must be embedding proppant costs into their fluid systems. why they feel the need to do this, is the million dollars per well question. I have been informed that our transportation, demerge, dust control and location cleanup costs on proppant are where we are looking to reduce in order to maintain the profitability that our investors desire. This is what I am seeing in the DJ Basin. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-21564017188866638862014-09-21T09:59:18.733-05:002014-09-21T09:59:18.733-05:00Yes, and I think the day of 22 stages is pretty mu...Yes, and I think the day of 22 stages is pretty much over (except where geologically it makes sense). The norm is now easily 24 stages, 30 stages, and getting higher. <br /><br />For newbies, I believe the rule of thumb in the 'old days' was $100K per stage. With the shortage of frack sand and the shortage of rail cars to carry frack sand, I can believe the cost of fracking has doubled +. Thank you for the update.<br /><br />By the way, I have to go back and look but I think it takes a unit train (100 cars) of frack sand to frack one Bakken well. Again, I could be wrong on that but I think I posted that sometime ago after doing the calculations. Bruce Oksolhttps://www.blogger.com/profile/10952652803684625738noreply@blogger.comtag:blogger.com,1999:blog-1149283829854298377.post-17728662008990828152014-09-21T00:09:27.957-05:002014-09-21T00:09:27.957-05:00Listened to Floyd Wilson most recent presentation ...Listened to Floyd Wilson most recent presentation and he mentioned the cost to frac is being quoted at up to 225K per stage !!! 22 stages is almost 5,000,000 the drilling costs have come way down its the completion side that is raising the costs. Anonymousnoreply@blogger.com