A Closer Look At The 70-Acre Parcel Whiting Bought For $2.346 Million -- July 15, 2022

See this post. 

A closer look at the 70-acre parcel for which Whiting paid $2.346 million.

Operators target EURs of one million bbls/well.

But let's take a look at wells with EURs of 500K.

1280 acres
500,000 bbls
$100 / bbl
$50,000,000

70/1280 = 5%

5% x $50 million = $2.7 million

12 wells x $50 million = $600 million

5% x $600 million = $30 million

Paid $2.346 million for the 70-acre parcel.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.

I often make simple arithmetic errors. 

I am inappropriately exuberant about the Bakken.