Rate of Return on Spearfish Wells -- The Williston Basin

A reader alerted me to this. Very, very impressive.

Surge Energy Presentations, December, 2012, go to slide 12. These are Spearfish wells on the Canadian side of the Williston Basin (yes, part of the Williston Basin), the Waskada (Spearfish):

• these wells cost about $1.3 million (target capital costs/well)
• net present value (NPV) of these wells: $2.1 million
• they payback that $2 million in about 18 months (less than 2 years)
• rate of return: >55%

Compare to middle Bakken wells: about $10 million/well.

Apple Computer tries to achieve a 45% margin. Just saying.