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Linn Energy, LLC (LINE) Message Board

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  • sandonthebeach47 sandonthebeach47 Nov 21, 2012 6:45 PM Flag

    So, how about profitable is the Bakken?

    A typical 2012 North Dakota Bakken well will produce for 45 yearsIf economic, enhanced oil recovery efforts canextend the life of the wellIn those 45 years the average Bakken well:
    Produces approximately 615,000 barrels of oil

    Generates about $20 million NET profit

    Pays approximately $4,325,000 in taxes$2,100,000 gross production taxes$1,800,000 extraction tax$425,000 sales tax
    Pays royalties of $7,300,000 to mineral owners
    Pays salaries and wages of $2,125,000
    Pays operating expenses of $2,300,000
    Cost $9,000,000 to drill and complete

    Sentiment: Strong Buy

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    • Only $400,000/year?

      What is the front-load, and how much is the return in the 45th year?

      Still waiting.

      • 1 Reply to rlp2451
      • Still posting some funny-skewed (400,000) numbers ?

        Linn slides showed their profitability for their Bakken wells at an average of ~ 50% which were listed as high as about 70% on earlier presentations (I will need to check which presentation dates).

        The State of North Dakota lists the profitability of Bakken wells as NOW at about $20,000,000 each one NET PROFIT...

        You still dreaming about your false information that you posted?

        BUT,

        on this:
        A typical 2012 North Dakota Bakken well will produce ......45 years the average Bakken well:
        Produces approximately 615,000 barrels of oil

        Generates about $20 million NET profit

        I think that the number will possibly be adjusted upward as technology improves even more in the next few years, because some bakken wells are NOW already at an EUR of 1,000,000 Bbls.

        So,

        the ND number adjusted to that, from only an estimate of 650,000 may become a NET PROFIT more like about $30,770,000 for each bakken well.....right?

        Please feel free to check the math using the state of North Dakota numbers, directly with Linn to confirm their profitability numbers, or with ANYONE you like.

        Sentiment: Strong Buy

 
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