2 x 500,000 x 50 = $50,000,000
$50,000,000 / 640 --> $78,125
Some data points and/or factoids:
- Others opine that the average EUR for the Bakken will be 603,000 bbls
- Raise your hand if you think the price of oil will average $50/bbl over the next 30 years
- The norm is now four wells on each section, not two as conservatively estimated above, and there are suggestions that in the very good Bakken, it will higher; see the November dockets; this has been going on now for the past six months or so
- Most opine that cost of wells in the Bakken are paid back in 1.5 to 3.0 years (open to discussion)
- There are "no" dry wells in the Bakken
- Some Bakken wells are "monster" wells; others are not economical
- These numbers are for the Bakken formation only; there are several other formations that have been and will be targeted, to include the Three Forks, Tyler, Madison, Red River, and Lodgepole
For those interested, the "historyteachers" have an entire portfolio of history lessons. This is just one example:
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