Hi tigger. If you look back. What I said was that all wells are different. Decline is inevitable & usually immediate. A well can still be viable at a bopd figure a lot less than its initial output. The big cost is the drilling. Thats done. The nodding donkeys dont cost a lot, the well just keeps producing oil. simples.........
Shylock/slip thanks for that info. I was just a bit surprised to hear that wells started to decline so early. But the diagrams show that its continual and gradual. Partially reassured now and still here for the long term. its going to be a rocky ride.
Hawk is going places
Despite the SP being played with !
10 hits out of 20
10 (wells) x 150 (bopd) x 365 (days per year) x 90 (barrel price) = $ 49,275,000 1 well costs Hawk 1 to 1.5m each Therefore 20 drills = 20 to 30m Therefore good profit in year 1 Year 2 no drilling costs but lots of profit !!!!!!
tigger24, you can't have read this BB very thoroughly. Decline is a fact of life and the only surprise with Steamboat Hansen was that it plateaued for so long. Decline rates vary but would typically be around 9%pa for a good-sized oil field. The decline rate usually slows up so that some wells in the US are still producing viably after 100 years. If decline curves surprise you, you may be investing in the wrong sector. Alternatively, do a bit ore research. Here's a decline curve: http://en.wikipedia.org/wiki/File:Theoretical_Oil_Well_Production_Curve.png ...and here's a good starting point: http://en.wikipedia.org/wiki/Oil_depletion#Oil_well_production_decline All oil producers are on a treadmill -- drilling for more oil so as to keep ahead of the decline curve. And NH has only just started.
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