and those assets have appreciated by 40 - 50% in value with the rise in EUR's. You don't get it, the completions and then recompletions and EOR is going to continue to drive down the price per barrel to produce. Securing the leases on some of the core geology was a brilliant move. When you are getting 70k bopd in 60 days it doesn't take too long to pay off the $7.5M it took to drill that well even at $50 oil.
payout is occurring much faster with enhanced completions. they priced the company with the increased production epr well incorporated and I bet everybody said show us so they are showing that the geology can produce million barrel wells with consistency. $7M well producing EUR of 1M barrels. even at $50 per barrel those are good numbers.
Larger Volume Completions Deliver 40-50% Production Increases. We have been testing larger volume completions across our acreage in the Williston Basin. These completions incorporated sand volumes of four to six million pounds with well costs ranging from $6.5 million to $7.5 million. As detailed in our press release dated July 17, 2015, enhanced completion wells have resulted in production increases relative to offset wells of 40% at our Polar field, 50% at our Walleye field, and 50% at our Pronghorn field. Results from enhanced completion wells in all three areas are outperforming our 700 MBOE type curve.
Enhanced Completion Dunn County Well Flows at 4,300 BOE/d. On July 22, 2015 the Skunk Creek 1-8-17-15H tested at a 24-hour initial production rate of 4,300 BOE/d from the Middle Bakken formation. This is the highest test rate recorded by Whiting and to date one of the best wells drilled in Dunn County. The well was a hybrid style completion with 32 stages and 6.2 million pounds of sand with an estimated well cost of $6.8 million
$7M well producing 1.2MB EUR's or $50M in revenue at $50 oil. the game is a changing
Enhanced Completions Deliver 40% to 50% Production Increases Across Multiple Williston Basin Areas; Enhanced Completion Dunn County Well Tests at 4,300 BOE/d
love it...and it will still get better. Bump those proven reserves up 40% to offset the value per barrel and loan stipulations are covered.
Read the Q@ conference call Q & A (page 7 of SA post) answer from Core Labs chairman with respect to rates of pumping in Saudi Arabia and Russia. Core Labs is one of best of breed technicians in geology and he said that Russian and Saudi's will not be able to sustain these pumping rates without ruining their well fields by breaching barriers that have held back substantial water production and once water production increases it doesn't stop increasing even when you cut back on pumpage rates. The man knows his rocks and that comment was very interesting since he has no reason to pick one side or the other.
there have been some new hedge funds recently announced 5% position and others that are in heavy that maybe averaging down as thy plan to wait out the cycle. I suspect that will be the ones to establish a floor. Seeing a new fund come in with such a big position speaks well for the ability of WLL to service the debt during the downturn in commodities.
HK may be a name that is subject to hostile takeover soon. HK is like a few like others with debt but property in decent to good geology; deeper pockets with longer waiting times are circling overhead. Vultures are just waiting until they know the low is in for oil.
Paulsen is in OAS pretty heavy. I didn't think he was in TPLM, but OAS has a substantial midstream asset too. They could combine them for efficiency and then spin them into an MLP to get the real value out of them. Watch out for HESS to go after OAS with their cash.
Hess midstream sold at 18.1 multiplier to projected annual earnings
I think Caliber is worth more than TPLM at that multiplier. TPLM needs to spin them off and monetize them while the appetite is out there for midstream.
What is 2015 - 2016 EBITDA for WLL midstream assets?
multiplier, that is your answer. both service companies are being valued with a multiplier of an E & P firm while service companies have much higher multipliers so their value changes when they get classified as service companies and not part of an E & P
Well results are impressive
The firm reiterated its "buy" rating.
"OAS is witnessing a 20%-45% improvement in early production from the high intensity completions in the Bakken and Three Forks, with recent pads showcasing early production double its type curve," said analysts.
Additionally, a company executive said that Oasis Petroleum is making "good money" at $60 a barrel, but while higher oil prices offer more flexibility, the company has not decided yet to ramp up activity, Reuters reported.