About Those Newfield $10 Million Bakken Wells -- The Bakken, North Dakota, USA

Some random data ponts:

• when the current Bakken boom began in 2007 in North Dakota, the majority of wells were short laterals, one-stage fracking
• I've long forgotten the cost of those early wells, but $3 - $5 million comes to mind; I may be way off
• now we're seeing mostly long laterals; 24 - 36 stage fracks; much more sand; expensive ceramics
• Newfield wringing its hands over high cost of Bakken wells; Newfield says we've seen the last of $10 million Bakken wells (meaning they will be higher)

Fast forward, December, 2011, ops update from NOG

• anticipates avg $7.4 million for Bakken wells in 2012
• long laterals will be the norm

Schlumberger is on record saying that there will be increasing price pressure on fracks going forward -- but other costs will be incurred. See this excerpt from recent SSN operations update (December 15, 2011):

NORTH STOCKYARD FIELD

Everett #1-15H, Williams County, ND (SSN 26% working interest)

Fracture stimulation operations commenced on the Everett #1-15H well on December 4^th with two stages pumped before operations were suspended due to hydraulic problems with the main pump units. The pumps could not be fixed on site and have been de-mobilized for repair. No stand-by charges are being incurred by Samson as the stimulation company is absorbing these. [This is the frack's team first frack job.]

Stimulation operations will continue early in the new year. The stimulation will be 20 stages and place 2.37 million pounds of proppant.

The Everett #1-15H well is Samson’s sixth Bakken well in the North Stockyard Field.