GREY:SCSZF - Post by User
Post by
maxamillionon Aug 17, 2012 12:36am
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Post# 20227932
Economics??
Economics?? Each Beaverhill Lake horizontal well is estimated to cost $5.5 million to drill, complete and tie-in however the Company expects that capital costs may improve on a go forward basis by 10 to 15% as the recent slowdown in drilling activities in the western sedimentary basin has resulted in continued downward pressure on service pricing. Although the Company has not drilled a Beaverhill Lake well in the third quarter it has experienced a 10 to 20% cost reduction on completion operations in the quarter when compared to historical costs levels.
Exiting gross production rates after 180 days have averaged 120 bbl/d of light oil per well. At quarter end the Company had an inventory of 9.0 gross (3.6 net) wells waiting on the installation of production equipment or completions.
How many years to pay for the well costs?? 4-5 ?
max