SlePefkdw on "well costs"

SlePefkdw — Tue, 08 Oct 2013 12:43:18 +0000

Michael Filloon's Highest Rated Comments Page 71

rlp2451,Thanks for copying the current buys, but its all on their web site. I am fairly certain you do not understand depletion making a remark like that. It is not just a quantity you pull out of the sky searching at one nicely result. Depletion can be impacted by shale thickness, quantity of water, quantity, choke and type of proppant are just a few of the variables that impact depletion. Simply because of this there truly is not any certainty as to what performs deplete quicker than other people, even though deeper performs have higher nicely pressures so they usually produce more source quicker. Both way, most of these wells will be refracced to improve manufacturing. Wells that have greater natural gasoline percentages have a tendency to have higher IP rates, but this doesnt necessarily mean much more source is produced over the life of the nicely. The other problem is well life. These wells will create from 30 to 40 many years, and then be followed with waterfloods. I am unsure why you determined to deliver up decline prices (depletion is the term) nicely costs, infrastructure, IRR, simply because all of which are improving. As for nicely expenses, they have enhanced considerably. The only purpose it appears much more costly, is current price decreases have permitted producers to invest much more on proppant and water. 1 factor to remember as nicely is a $ten million well price is not that bad for wells with an EUR of one thousand MBoe. Especially when you think about the oil content. 1 factor is particular, the simple oil is gone and the only way to develop manufacturing is via these unconventional performs.

Sep 16 09:fifty PMOn March 1st of 2011, they spent $196 million bucks to buy Concho's property in the Williston Basin. Final yr it produced a total of three buys to get its internet acreage to 17000. Linn ideas to spend $54 million this year on Bakken wells. I do not understand where you get they are disinterested in being in the play. No 1 know for sure what any business will do, but they are 1 of the businesses that could make the buy. Its deceptive to say that Linn has little curiosity in the Bakken.

Sep fifteen 06:24 PMskelly73,cheap nike air max 1,I do have a few of articles planned for the Eagle Ford, and think the perform is much better than the Bakken from a preliminary production and EUR standpoint. I do think the the Bakken might have much more upside as higher expenses have slowed Bakken stocks in increasing valuation. I think the Bakken might be a better place to be because of to what I think will be costs decreases over the subsequent two to three quarters. CHK's acreage to the west is extremely good, but nothing like Gonzales County. The area in Gonzales is a very thick portion of shale in over a little region,cheap nike air max 90, kind of an anomaly in the area. When CHK purchased its acreage it did so because of how shallow the shale is in Zavala and Frio Counties. Its only 6000 ft deep at its lowest depth. The litmus check for companies in this play is EOG. It has some massive wells, but seems to have a much better comprehending of gathering source. CHK's acreage is extremely good and probably much better than the relaxation of its acreage from an IRR basis.

Sep fifteen twelve:fifty one PMdaveog,I believe location and operator can equally effect results. If I had been to checklist the best operators in the Bakken, the checklist would most likely be:one. KOG2. NFX3. Brigham (STO)4. EOG5. XTO Power (XOM)6. Burlington (COP)This checklist is a little bit skewed simply because it deals more with companies that have optimal acreage, so companies like OAS have acreage in north Mountrail and western Williams might be producing well sufficient but not have enough really good acreage to assist formulate the correct outcomes. Right now it seems businesses utilizing long laterals with 30 to 34 phases, 80000 barrels of water, 3500000 lbs of proppant are on the right monitor, but it is tough to guage from 1 region to another because every field will have a little various mixture.

Sep 11 04:24 PMp salerno1,I do not own COP or XOM, but believe an trader would be less inspired to purchase protection for these bigger companies, but still may consider it if getting into a place correct now. I believe decreasing risk is essential right now given all of the variables that could negatively impact the marketplace as a whole. QE3 has been somewhat priced into the marketplace and with fiscal cliff issues we could see a large pullback in commodity pricing prior to year end. I believe traders ought to remain in the marketplace because we could see a run into year end as well, but decreasing dangers correct now is important. For companies like KOG, OAS, and particularly TPLM restricted stops require to be placed on these names.

Sep eight 03:26 PMMichael,Whting's outcomes have been quite good, but that slide misrepresents manufacturing outcomes when looking at the near term. This is for wells since 2009 and takes average and complete manufacturing into account. EOG has really done much better than Whiting as it has done brief (5000 foot) laterals compared to Whiting's (ten thousand foot) laterals. The reason these two businesses have this kind of great figures, in 2009 is they were creating the Sanish and Parshall fields, while other companies (like KOG) had been nonetheless figuring things out. Thats not to say that Whiting has not carried out a good job over the previous twelve months, but I am fairly sure we would see much various results. Whiting requirements to use more water and proppant on its wells, which would improve expenses some, but I think this will more than pay for itself.

Sep five 09:forty PMrlp2451,This is difficult 1 as every producer utilizes different completion techniques that can vary in lateral length, size of choke,cheap air max uk, amount of water and proppant, and stages. Every field can differ a fantastic offer as well. The only way to know for sure is to look at all of these variables amongst the various producers and give an estimate of what it means from nicely to well. The Charlson Field nicely is correct next to Newfield which has had similar outcomes even with a regular dimension choke, so it is not inconceivable that nicely was in sweet spot. I have carried out some function evaluating completion methods of various Bakken players so taking a look at some of that may assist. I did quite a bit of function on it in July.

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SlePefkdw on "well costs"