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Linn Energy, LLC (LINE) Message Board

  • sandonthebeach47 sandonthebeach47 Nov 25, 2012 12:14 PM Flag

    Bakken Profitability

    There seems to be some misunderstanding of my numbers and where they come from.
    They came from the State of ND and from an article about Hess and then the Hess Bakken Development presentation for their Bakken operations.

    This below is from my earlier with a rough calculation posted before along with the Hess EUR of NOW being 1 Million Bbls mentioned in the article:

    EUR of 1 million Boe per dual lateral
    $10-$11 million per dual lateral
    30 day IP of ~ 1000 BOPD, (~450-500 Boed per lateral) "

    "Here is some info on Hess results ALREADY from LAST YEAR which shows they are at 1 Million EURs for their bakken wells on average....now:

    Hess has an impressive 500,000 net acre position on and to the East of the Nesson. This includes much of what appears to be the core in Mountrail County. Whats also interesting about Hess in the Bakken is their drilling and completion strategy. They are drilling dual laterals with impressive results. They say the economics of this are beneficial since it takes less surface equipment, fewer verticals, and they can be drilled from a pad. Hess has been giving the same stats for these wells the past few quarters.

    EUR of 1 million Boe per dual lateral
    $10-$11 million per dual lateral
    30 day IP of ~ 1000 BOPD, (~450-500 Boed per lateral) "

    And,
    that when you adjust the North Dakota state's numbers the 20,000,000 NET PROFIT that they published as the net profit for each typical Bakken Well becomes:

    1,000,000/615,000 Bbls (EUR) = 1.626 X ($20,000,000) = $32,520,325 as the adjusted NET PROFIT for each typical bakken well if the EUR is not 615,000 but at 1 Million Bbls.

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    • To add to the point of 1 million EUR not only being what Hess is now using but that it is also reasonable....some Hess wells in the Williston basin have already produced (actual results, not just projected results) more than THREE times the current 1 million barrels EUR that is being used by Hess for their Bakken dual lateral wells.

      There is a list of the better wells for the area and hess has been there about the longest.

      Here are just a few specific Hess examples:
      3.4 million bbls
      " Beaver Lodge-Devonian Unit C-3051, Silurian/Devonian, t11/59; cum 706K/2.74 million bbls -- total, over 3.4 million bbls; produced for almost 40 years.

      2.02 million bbls
      Hess, Beaver Lodge-Devonian Unit H-310, t3/60; Devonian, 2.02 million bbls; still active; almost 2,000 bbls monthly, 7/12.

      2.1 million bbls
      Hess, Tioga-Madison Unit L-144, Tioga, t8/53; cum 2.1 million bbls;

      Those older Hess wells were not even with dual laterals.

    • So if they put 14 wells on one pad, your're going to claim that is a total of 7.5 million EURs?

      Figures.

      • 1 Reply to rlp2451
      • I already told you at least twice how many wells Hess does have on one pad....

        SIX wells on a TEN acre pad with each verticle having TWO laterals.

        Each lateral will produce 500,000 to 600,000 Barrels of oil.
        The EUR is posted by them at ONE Million....but it may be 1.2 million or may be more if you base it on their past well results.

        The cost is posted by Hess at $11 Million each well from last year. Prices are now maybe a little less since prices have falling a little since late last year.

        The 30 day IP is also posted for each lateral....they show each well at 1,000 boepd for a 30 day IP rate.

        Go read what was posted about a half dozen times and stop asking the same stupid question.

        What is your problem?

        Why don't you go check (don't believe me...go look for yourself) so you do not keep asking the same thing in ten different ways?

    • how long are you 2 going to drag this subject on for?

 
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