Update on Monster Wells

My original post on "monster wells" can be found here.

This is an update from the Bakken Shale Discussion Group, a thread started in early April, 2010:

The 500,000 bbls club (500KBC):

As of February, 2010, there are at least four wells that have produced > 500,000 barrels of oil:

• Behr 34: 500,725 bbls in 591 days
• Austin 28: 504,554 bbls in 517 days
• Austin 21: 514,353 bbls in 522 days
• Chandler James: 500,234 bbls in 484 days

As a reminder, 500 days = 16 months; that's barely more than a year. Bakken wells will certainly produce for seven (7) years and I most will last much longer with pumps, work-overs, re-fracks, etc. BEXP says Bakken wells will be economical for 39 years (corporate presentation, August, 2010).

The Austin 28 is now producing over 1,000 bbls/day after getting a submersible pump in December, 2009. At $50/bbl, that's $1.5 million/month at the wellhead.

The Chandler James and the Behr well are still flowing according to the posting, referencing the NDIC website. Wow!

The PetroHunt USA 2D has produced 933,366 bbls and is still producing 586 bbls/day well into its third year of production.   1 million barrels = a minimum of $40 million at the wellhead.

A few points:

1. Oilmen are optimistic and always looking to the next well. I don't think they think much about wells that have already been drilled. They are only looking for cash flow to drill that next well, hoping for a game changer.

2. In the old days in North Dakota, I remember a lot of "dry" wells. I don't see many dry wells in the current boom. Even poor wells (not "uneconomic" and abandoned wells) produce some cash flow. Wells that are only producing 300 barrels/day (about $0.5 million at the wellhead) are reasons for yawning.

3. As one can see by the "monster wells" above, one well can pay for a lot of future drilling with one great well.