About 70 wells were affected by an operator transfer from Eagle Operating, Inc., to Williston Hunter ND, LLC. Most of these were very, very old wells, but there were some good Madison wells in that mix. For example:
- 4724, 110, Shong et al 1, Eden Valley, a Madison well, t8/69 (the year I graduated from high school); cum 190K 6/12; it's been pumping between 250 and 300 bbls/month since 1977. It's been producing oil for more than 43 years. Just saying. 300 bbls x $50/bbl --> $15K/month for very little expense. It's biggest expense is probably getting rid of salt water. Anyway, enough of that.
- Operators: Petro-Hunt (3), Hess (3), BEXP (2), MRO, Slawson
- Fields: Strandahl (Williams), Antelope (McKenzie), Manitou (Mountrail), North Tobacco Garden (Mckenzie), Last Chance (Williams)
Let me extend that math for you.
ReplyDeleteIncome per year for the last 35 years would be 300 bopm times 12 months times your assumed $50/bbl, which is $180,000 per year. For the 35 years that would be about $6,300,000. From ’69 to ’77 that would leave 64,000 bbl, which I’ll make a wild guess would throw off $30/bbl, or another $1,920,000. That’s about $8.2 million over 43 years. Readers are free to revise my rates as desired to get an estimate for lifetime production.
What do you suppose the ROI percentage is on that well?