RE:Back to Three RigsTime for some bar napkin math on Surge's 102/01-03-05-06 W2 Lampman well that is shown in the above chart.
For 60 days it averaged over 500 boe/d.
60 days X 500 boe/d X $75 = $2,250,000
That easily covers the $1.6 million drilling and tie-in cost. During the next six monhts, this same well settled in at a fairly steady 275 boe/d.
180 days X 275 boe/d X $75 = $3,712,500
At the end of August, this well was still producing 250 boe/d of high netback light oil. Spud to tie-in is typically under two weeks.
As interesting as that sounds, this story gets better. Surge has already drilled multiple wells in this area this year. They have plenty of land available from their Astra Oil acquistion, they have drilling licences in place and a rig is actively working to drill many more wells that so far, all seem to be similar or better than the above. Surge's most recent well on the same pad was producing over 650 barrels of oil per day at the end of August plus 60 boe/d of gas.
With oil up over $80 CDN / barrel and likely heading higher, the Surge Lampman story will only get better.