Macklin The first Macklin well produced 7000 bbls in under 3 months.The second and third Macklin wells produced over 6000 bbls each in 2 months.With $60 field netbacks those 3 wells would bring in enough cashflow in their first 3 months to almost cover half of their $1 mil per well drilling costs.If that isn't a license to print money,what is?
It takes about 17000 bbls of production per well to cover the $1 mil drilling costs.Assuming it takes 9 months production to reach 17000 bbls,every bbl after that is bonus.These wells normally produce from 50000 - 100000 bbls over their lifetime,that leaves 33000 - 83000 bbls apo.Since Saskatchewan has oil royalties of 2% on the first 37,000 boes of production,the next 20000 bbls from the Macklin wells still have only 2% royalties. Is Saskatchewan too generous?????? Obviously with these metrics who needs Alchemists.