alone in the play? AT nearly $12MM/well (current cost) there isn't a junior OR intermediate capable of planning a cost effective drilling and production program in the AB Bakken... economy of scale is going to be required in order to drive down the costs to a "mere" $6-$7MM/well... think about that... 10 wells at a total cost of $60MM for production of??? on the pessemistic side... 300BBL/day/well ...or 3K BOE/d... ABSOLUTELY ECONOMIC BUT... as the SK Bakken play has illustrated...this reservoir IS spotty ... sweet spots... dry spots, watery spots...This is a play for companies that are NOT concerned about tossing a few million into dry holes IF they can drive production upwards of 30K BOE/d on a 1/2 billion dollar budget over 5-7 years...and think about that... $500MM would ONLY cover 100 wells... at $5MM/well... and say a company does manage to ramp production up to 30K BOE/d... how fast is the drop off in prod going to be... and how many MORE holes will need to be drilled on an annual basis to maintain that prod?
For BWD... that ONE well startted this whole thing... 1 vert well that has kicked out... what??? nearly 300K BOE over 20 years??? what's the math on that? 40BOE/d average over 20 years... anyone believe that LEG....or any number of Intermediates are going to be around that long?
So...what is this land ...and BWD really worth??? to an intermediate... NOTHING... to a Senior looking for a break out and uptick in it's "liquids" production... MORE than 50 cents a share is my optimistic bet..
Keep it real...as always it's just my opinion... get your own...