Worth Re-Posting -- June 25, 2017

Previously posted.

Look at the production coming out of the Permian. 

Drilling horizontal sidetracks from abandoned wells in the Permian Basin is yielding a 91 percent internal rate of return on a $7 million investment and delivering 1,500 barrels a day of crude. He predicts large production increases from vertical wells in previously produced areas in the Permian.

1,500 bopd = 45,000 bbls/month -- which some Bakken wells do, but generally, initial production for Bakken wells is in the range of 15,000 to 30,000 bbls/month for the first couple of months, and then drops off significantly.

Think of the cost savings when drilling from an abandoned well:

• site surveys have already been done; only need to be reviewed, tweaked
• possibly, up-front lease bonuses are not required
• roads to site are in-place; pads in place but will need to be improved
• some infrastructure in place