Updates
Later, 9:46 p.m., see first comment.
Filloon on MRO in the Bakken: back in August, 2018, Mike Filloon, over at SeekingAlpha, had a great update regarding MRO in the Bakken. It is still accessible, though you may have to register at the site. Archived, in case the SeekingAlpha site "disappears."
At that SeekingAlpha article, Filloon posted this graphic, one of many:
Original Post
See this post.
Average wells are now costing MRO less than $5 million/well. See 3Q19 MRO earnings conference call presentation.
$5 million / $50-oil = 100,000 bbls of oil (does not include associated NG and NGLs)
$5 million/ $40-oil = 125,000 bbls of oil (does not include associated NG and NGLs)
$5 million / $30-oil = 167,000 bbls of oil (does not include associated NG and NGLs)
Dr oksol - love where you’re going with this but- Gotta consider lease royalty, taxes and LOE. LOE in the bakken is roughly 30% of top line revenue. Lease operating expense in the Williston is high.
ReplyDeleteYou are correct.
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