GREY:LSTMF - Post by User
Post by
nlr2on Mar 11, 2010 8:40pm
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Post# 16873827
2010 Growth
2010 Growth
PetroBakken Energy Ltd. doesn’t provide capital expenditure guidance for the year ahead but president and chief operating officer Gregg Smith had the calculators buzzing during a presentation at FirstEnergy Capital’s New York conference Thursday.
He said the company plans to use eight rigs in the Saskatchewan Bakken tight oil play to complete 150 wells this year, all with bilateral legs, at a cost of about $2.3 million each.
That’s $375 million, right?
The company hopes to run two conventional rigs in southeast Saskatchewan, drilling 24-30 wells at $1 million to $1.1 million.
So, uh, $24 million to $33 million?
It will have six rigs operating in its new Alberta Cardium oil play, drilling about 60 (44 net to PetroBakken) holes at between $2.5 million and $3 million, although the company is trying to use its expertise to trim those costs to about $2 million or $2.1 million.
That’s a range of $88 million to $132 million, net to PetroBakken.
It also aims to drill three natural gas locations in northeast B.C., but Smith didn’t give a number. If we figure $5 million per well, that’s $15 million.
Add it up and it comes to ... somewhere between $502 million and $555 million in capital drilling.
That’s a big jump over $394 million in 2009, as revealed in recent year-end reports, and $546 million as a pro forma number from 2008, the year before PetroBakken was formed.
— Dan Healing, Calgary Herald