RE:RE:RE:.02
Please correct me if this is wrong !
- $2500/day is $850/900m p/year
- drilling and completion cost is about $600m
- one water injection well will support 10 production wells
- operating costs, landowner residuals and pro-rata share of water injection well (unknown)
If I assume operating costs as high as 50%, that $2500 works out to capital cost recovery in about 18 months.
I am not saying this is sure thing, but the preliminary indications are interesting - especially adding in rapid ramp up possibilities, takeaway agreements and prices being squeezed by supply limitations (at least so far), so I am trying to figure out what's the catch.
There is another company - Avanti - in similar position / path.