CLR has 22 rigs in North Dakota.
Minot Daily Press is reporting that the CLR/CEO has said he plans to double that number of rigs in North Dakota over the next five years.
2 x 22 = 44.
Okay.
44 x $7 million/well x one well/month = $308 million/month in drilling costs. That is a lot of investment in North Dakota; and, that's just one company, albeit the one with the most rigs. Someone correct me if my math is wrong. (The most recent CLR presentation, December, 2010, shows a Bakken well to cost $6.5 million to complete.) However, not all CLR wells are Bakken wells, and it may cost more or less to complete wells targeting other formations.
[Update: in the original post, I used $5 million as my figure for drilling a well. Someone commented (see below) that a better figure to use was $7 million, so I changed my note above, as it is now. It should be noted that GEOI just completed a well for $5.6 million. -- January 17, 2011.]
i think the marathon statement at the end is a typo or reporter misunderstanding. i have seen statements in reports of the potential 22,000 barrels a day from just the bakken surely not 22 million a day. that does not even make sense for the whole company as that is about 1/4th of worldwide consumption in one day.
ReplyDeleteYes, I thought the same and ignored it.
ReplyDeleteEven as inappropriately exuberant as I am about the Bakken, I doubt MRO will get to 22 million barrels/day any time soon. Like ever.
It has to be a typo. I have heard that Hess plans on 100,000 BOEPD by 2015 and they are far more active with more acres. Oh a large gas plant also.
ReplyDeleteAnshutz said the Dunn county wells are costing about $7.5 million per well to drill and make operational.
ReplyDeleteYou are correct. Different companies have different figures. CLR's most recent presentation says CWC (cost of well completion) in the Bakken is $6.5 million compared to $7.6 million in the Anadarko Woodford. With increasing drilling, and price of oil increasing, it is expected that wells will cost even more. There are some cost savings, though it seems to me, minimal, with multi-well pads, such as CLR's Eco-Pads.
ReplyDeleteI'll update the posting to show $7 million for each well.