A Big "Thank You" To Carpe Diem For The "Hat Tip"

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Mark Perry references the impact of a single well. It's already "crazy" and it's gonna get crazier: we're getting use to four-well pads in the Bakken. We are starting to see more 5-well and 6-well pads.

It's hard to believe, but we may start seeing more 10-well pads, or two 5-well pads next to each other. Some already exist, but relatively few. The wells at $10 million apiece will push a single 5-well pad or a 10-well pad to $50 million to $100 million. To help put that in perspective, KOG's 2013 CAPEX is $775 million, 75 net wells, according to their most recent corporate presentation.

But I think when we go to 10-well pads we will start to see mini-oil-pad-complexes (MOPC). For ten to twelve months these pads will be mini-industrial sites where sand and ceramics are staged over time. There will be a water pumping station or reservoir. Scores of tanks for commingling will be on site. Small natural gas processing plants will be built to provide power for ten pumps. McDonald's restaurants will move in on-site. Okay, kidding about that last one. But it wouldn't be surprising to see temporary living quarters on-site.