Link here, which mentions that acquisition.
Can someone check my math: $3 billion/40 wells --> $75 million/well?
Unless my decimal is off, a Bakken well for $7.5 million seems like a good deal in comparison.
Again, my math could be wrong.
Or, maybe their musical productions are just that expensive:
Could it be that Statoil is Statoil and Brigham is Brigham as far as they are concerned, at least for the time being?
ReplyDeleteBy my count Brigham has 15 or 16 rigs active in the Bakken. If we were just talking about the Bakken then 40 new wells in 2012 divided by lets say 15 rigs would be 2.6 new wells drilled per rig for 2012. If there were a 16th rig, they might want to consider laying it down in this scenario.
Wow. I am sure the drilling crews would love it. They would only have to drill in June and July and could be home with their families the rest of the year. This may also help with the housing shortage in Williston.
Wow, brilliant minds think alike. I was thinking the very same thing earlier today, and I've thought about it several times before: it sure seems BEXP is still here, with no changes. One almost wonders if you have it exactly right: a division that Statoil is just going to leave alone as long as it produces so well. Why fix something that ain't broke. I'm glad you said it first; I was going to post that but thought folks would think I'm nuts.
DeleteOn a second note, I doubt they would let rigs and the Bakken rest for 10 months, but I'm sure the roughnecks would appreciate if (especially if they got paid for a full year).
BEXP, by the way, bought an entire neighborhood in Williston, put in the utilities, sewer, water themselves, and then put up maybe 20 houses for their employees. At least I was told the 4-block area that was being developed was BEXP's, and that BEXP was doing all the underground stuff 'cause the city was not going to be get to it in a timely manner. I don't know how many houses they eventually put up; I left the Bakken before they were completed; I just estimated the size of the "4-block area." Could be way off. West side of Williston.