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To: thackney

The unit, which spans 1,280 acres, tested at an initial combined monthly rate of 14,850 boe/d from all 14 wells.

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It is frustrating they only gave the combined data and not the individual.
....................
So lets presume the worst case. The profound success of one or more of the wells at one or more levels is covering up a poor performance of one or more wells at one or more levels.

Would I presume wrong if I presumed that with 14 wells on a pad, the cost per well goes down considerably. Such that even a well that brought up 400 boe/d would be economic—because the incremental cost of drilling another well is much less once the pad and set up is established and paid for.


43 posted on 06/20/2014 2:26:24 PM PDT by ckilmer (q)
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To: ckilmer
Would I presume wrong if I presumed that with 14 wells on a pad, the cost per well goes down considerably.

I don't think pad costs are significant.

But what does go down, assuming they are using something like a walker is the set-up & tear-down between wells. The wells themselves would have little changed.

The cost/time to tie into production, gas line flare, etc goes down with a combined service.

So lower cost, but not much lower, most of the money in the well hasn't changed.

44 posted on 06/20/2014 2:30:07 PM PDT by thackney (life is fragile, handle with prayer)
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