Moving To Twenty Wells In 1280-Acre Drilling Units In The Bakken -- August 6, 2019

Generally speaking, fourteen wells is about the maximum number of wells I've seen in any 1280-acre drilling unit in the Bakken. If any 1280-acre unit has more than fourteen wells, they are few and very far in between.

However, in the August, 2019, NDIC hearing dockets:

Case 27809, Newfield, Siverston-Bakken; 14 wells on each of two existing 1280-acre units; 6/7-150-98; and, 30/31-151-98, McKenzie; already 6 wells on each of these units; this will make it 20 wells in each of these 1280-acre units;

Reminder: that's a case, not a permit.

It's been said that operators won't drill wells in the Bakken if the EUR is not at least one million bbls.

Back of the envelope ciphering:

20 wells x one million bbls (EUR) = 20 million bbls

20 million bbls x $50 / bbl = $1,000,000,000 ($1 billion)

Each well with  infrastructure, etc: $10 million/well (wells are now costing about $6 million to drill/complete).

20 wells x $10 million/well = $200,000,000 ($200 million)

$1 billion - $200 million = $800 million

$800 million / 1280 acres = $625,000 / acre.