Real drill costs.31 Jan 2026 08:13
MB has previously told us that DQE charge us 1.5 million to drill a well and the total cost if we go on to complete the well and bring it into production is 4 million dollars.
Any prospective farm in partner would know these costs are way over what it should be, see the question posed to AI below and the answer.
MATAD have little option other than use DQE.
Fact is it would cost Petro China less than half what MATAD are paying and if the likes of OVL India were a farmee and used their own rig and crews they could be drilling wells for half the cost MATAD pay.
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Question posed to AI = Assuming an oil company has its own drill rig and crews plus associated equipment how much would it cost to drill onshore 2600m oil well, the cost should include drill, completion and bring to production, this would be a low volume sub 300 bopd oil well with straightforward vertical drill and minimal mobilization costs.
AI answer = Costs for Drilling a 2600m vertical Onshore Oil Well
Here's the breakdown:
Cost Component (USD)
Drilling Costs
- Mobilization & Rig Setup 50,000 - 100,000
- Drill Bit & Consumables 100,000 - 300,000
- Drilling Fluid 50,000 - 150,000
- Labor 150,000 - 300,000
- Other Drilling Expenses 50,000 - 100,000
Subtotal - Drilling Costs 400,000 - 950,000
Completion Costs
- Well Completion Equipment 100,000 - 250,000
- Cement and Perforation 50,000 - 150,000
Subtotal - Completion Costs 150,000 - 400,000
Production Setup
- Surface Equipment Installation 50,000 - 100,000
- Infrastructure (Roads, etc.) 20,000 - 50,000
Subtotal - Production Costs 70,000 - 150,000
Total Estimated Cost 620,000 - 1,500,000
The total estimated cost ranges between $620,000 - $1,500,000, accounting for minimal mobilization and associated costs. This provides a more economical view while still addressing the necessary components for drilling and bringing the well into production.
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