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To: TLI

It’s unlikely that anyone is plugging a well producing 10 barrels of oil a day in today’s price environment.

However, re-entering a well which MIGHT be capable of producing that much is going to cost probably around $300,000. Of course, you’re going to have to pay a royalty percentage to the landowner for every barrel you produce, plus pay severance, ad valorem, and income tax for every barrel.

Then you’re going have to pay a fee to someone to pick up those barrels and take them to a refinery. That’s after you pay to install tanks near the wellhead to store the oil that is produced because trucks won’t be lining up every minute to pick up the next quart of crude you bring to the surface.


43 posted on 07/06/2008 2:12:35 PM PDT by Dog Gone
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To: Dog Gone
Bearing all that in mind, is it likely that, if the price stay at $140 or more, a truck might stop by there once or twice a month to picks up the small amounts?
46 posted on 07/06/2008 2:16:40 PM PDT by rodguy911 (Support The New media, Ticket the Drive-bys, --America-The land of the Free because of the Brave-)
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