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US Energy Corp. Message Board

  • ironblls ironblls Mar 24, 2013 4:00 PM Flag

    Decline in Production

    I still have not had my question answered. Can any of you "OIL EXPERTS" tell me if the IP on one of their wells is say 1800 bpd what would the expected production be after one year then after two years. Maybe the areas are to new for that if so any guess?

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    • Actually, I forgot Friday is a stock market holiday and Thursday (settlement day) is the end of quarter trading day.

    • Friday is the end of the quarter. If no news comes out and the volume drops next week I will assume the selling is all window dressing.

      They just published the 10-K. The only unresolved issue I know of is the Forest Service decision on the mine.

      By the way, back to oil, you should go to investor village and look at the data on the Buda wells Ed posted.

    • Iron, overall the wells they have have already gone through the steep decline phase. They are now in a much slower decline phase.

      They do not need the cash from the plane, but they do need the stock price to go up. The administrative exoenses dropped and should drop again.

    • Iron, the wells have a 90% decline rate after the first year. But the second year the decline rate is approximately 8% to 10%, and so on so forth year after year. Almost all of USEG's higher interest rate Bakken wells are over a year old and now have a much lower decline rate. That is why no one is expecting a big drop in production. Production was flat from the third quarter to the fourth quarter despite adding few wells.

      • 1 Reply to ssuehtemorp
      • Thanks Ssue. So let me get this straight--- the wells they have will decline 90% in production after the 1st year --- They must keep drilling wells or the 1200bpd will decline to ?? -- It takes $$ to keep drilling these wells -- looks to me like they will run out of money soon, as the production they have now is getting eaten up in overhead. I think I now understand why the Jet & the apartment house went. They need the $$ to keep the bpd flowing. You know Father Jack (deceased) would have cut off his little finger before he would have let go of that Jet. I think the "boys" feel the same but it had to go to get some cash.
        Man oh Man all of a sudden this thing is not looking healthy or I am completly off track.
        I am itching to start buying some in here but are they running on a quarter of a tank Apparantly the sellers ( I beleive mostly institutional ) think so. They don't seem to have any problems bailing at these levals at all.
        Any and all replys will be welcomed.

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