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Tuesday, December 18, 2012

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.


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2 comments:

  1. AnonymousDecember 18, 2012 at 6:22 PM

    Compare Surge/Corinthian wells to legacy wells, in ND.

    Both companies claim they do a great job. Results of one seem far superior.

    Legacy drills one mile laterals, Surge half mile.

    Surge wells are new. Some Legacy are older.

    I don't count EOG and other wells bought by Surge.

    I think all Legacy wells are theirs.

    They overlap. Some nonop interests in each others wells.

    New stats are out.

    Anon 1

    ReplyDelete
  2. AnonymousDecember 18, 2012 at 6:25 PM

    MHR claims their B/3F wells on both sides of the US border compare favorably with big Bakken wells. Smaller and cheaper. Sometimes that is better.

    Anon 1

    ReplyDelete

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