I meant commercial waterflood, not the pilot scheme of course because until we completed that trial exercise and as a result got the relevant permits we had not in truth commenced waterflood. I was just addressing MissUK's earlier post. Interesting choice of name, could it be someone who misses living in the UK perhaps?
When they say half the cost of development wells. It depends entirely on the accounting method you use...they have used the “keep them in the dark method”. the question was avoided last time because I asked what the lifting costs are, which is the true marginal cost and far more revealing.
The reluctance to state the cost base, which other operators have done, say a lot.
CH how do you think they have allocated overheads ?
Miss UK I answered your question last night and some idiot took it as my summary of the Q&A. It does you no credit that you make statements without researching the facts beforehand. 1. They haven't started waterflood yet - Oh yes they have 2 Then we have wf is secondary recovery? You don't know??? 3 Not knowing about secondary recovery you then tell us it is expensive when the Q&A tells us it is half the cost of conventional recovery! 4. The bbls/d achieved will never be that great. Well, the company expect a daily rate in excess of 2000 bopd as the process has been proved to be very effective.
For the failed traders information this is still not a summary of the Q&A but an answer to another question.
Actually that is not correct waterflood started in December, and it is actually half the cost of development wells:
4. How do the costs compare between normal oil drilling and waterflood? Total cost for waterflood / barrel basis is approximately half the cost of development wells. Waterflood is key to Range’s operations and to longer term production growth for the Company.
They haven't even started waterflood yet. And wf is really secondary recovery. It's expensive and won't make anyone rich in this type of asset. The bbls/d achieved will never be that great. At best pay the bills, won't be anything left over for shareholders.
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