AEZ (was bought by Hess; announced in 2010)
2Q10: Operational Results.
NEWS
December 30, 2010: Hess Acquisition of AEZ completed, December 29, 2010.
November 13, 2010: Ramblings on AEZ.
November 13, 2010: AEZ reports another nice well west of Ray.
October 21, 2010: AEZ reports a very, very nice wildcat northeast of Williston.
Original Post
AEZ announces Ron Viall 1-25H comes in with a 24-hour flowback of 2,844 boepd.
Some folks familiar with the Bakken and the initial production reporting are yawning over this news.
But as Mark Twain said, "Whether or not IPs are exaggerated, all things being equal I would prefer my well to have an IP of 5,133 boepd rather than zero boepd."
I couldn't agree more. The AEZ folks, having sold all their Wyoming assets, are now a pure-Bakken play. They have to be happy with this well even if others are not.
From that same press release: "American also reports that the Tong Trust 1-20H well, located in T157N-R96W, Sections 20 and 17, that initially produced 1,421 barrels of oil equivalent per day ("BOE/D") from the Bakken formation, averaged 962 BOE/D during its first seven production days and 652 BOE/D during its first 30 production days."
652*$70 = $1.4 million in the first month. If the well pays for itself in a year, everything after that is frosting on the cake. Actually not "everything," but quite a bit.
