Earthstone Energy reported that it has concluded drilling operations on its horizontal Ratcliffe well, the Federal #1-5H, in Sheridan County, Montana: The well horizontally penetrated ~ 5,000 ft of Ratcliffe with encouraging results before drilling operations were concluded. The co expects to begin completion operations within the next two weeks.By my calculations, 7.5% of $13 million is about $1 million. So about $6.5 million/well. If I did the calculations correctly. 5,000-ft lateral would suggest a short lateral. I don't follow Montana activity so I could be wrong on some of this. I believe the Ratcliffe formation is part of the Madison group, not the Bakken.
The Company estimates that its 7.5% share of drilling and completion costs for the two wells will be ~ $1.0 mln. Co plans to fund all the above efforts with existing cash, its cash flow from operations, and/or proceeds from its recent sale of Colorado properties.
Tuesday, February 7, 2012
How Much Does It Cost to Drill/Complete a Well in the Williston Basin?
From Yahoo!InPlay; no link. The link would be dynamic and not there tomorrow.
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Whiting presentation today. Also ONEOK. And several non Bakken.
ReplyDeleteanon 1
I believe that you are correct in that the Ratcliffe is part of the Madison group. I beleve the Madison Formation in this area is around 8800' while the Bakken is around 10,300'. You could probably tack on another 1.5 to 2 million for a Bakken well. If this Ratcliffe well shows promise, the target formations in this area could be the Madison, Lodgepole and Bakken not to mention the TFS. You will see alot of activity in the Northern Roosevelt and Southern Sheridan Counties over the next two years as they really don't know what they have in this area. Will be interesting to watch.
ReplyDeleteLooking forward to Montana activity, but I won't blog much about it unfortunately -- just too much to keep track of. I have enough trouble keeping up with the Bakken.
Deletegood story on Bakken crude falling 24% this year. Investors Business Daily. Tuesday.
ReplyDeletehttp://news.investors.com/Article/600363/201202071742/bakken-oil-prices-plunge-on-oversupply.htm?ven=yahoocp,yahoo
Great link, thanks.
DeleteI've posted it as a stand alone:
http://milliondollarway.blogspot.com/2012/02/takeaway-capacity-strained-williston.html