RE: RE: RE: Whatever happened to Oullins? Horizontal vs new well
I'll take a stab at convincing you since I am back.
You did not think I would let that one go by did you? LOL
It is actually the best possible time to do it.
You have 19K BOPD +UMU10 available for production so around 23K BOPD
You can only export 12.5K BOPD
You are not going to miss 2K since you would not know where to put them. BTW the well is already shut in from time to time anyway.
A well producing 4K BOPD takes 4-5 months and cost $14M paid by the partner. The partner would not get their money back from extra flow rate until Q4 2013 and they have to agree to the expense before the drill bit starts.
An horizontal well with reentry cost maybe $3M max and is done in 2 months. A lot easier to digest for the partners.
So the ROI for $3M is an extra 6K BOPD behind the pipe
The ROI for $14M is an extra 4K BOPD behind the pipe
I forgot one thing, in the same time you do 1 well you can do 2 horizontals for less than 1/2 the price.
Your call !!
I know what mine is.