Income per well3 Apr 2019 12:36
Looking at a recent interview with SS he seemed to suggest that each well would be worth £17m gross per year, assuming flow 730-1080bopd flow target (from where he said the 6% of gross income received would go into the community fund as around £1m per year). If we hit 1080bopd with the current oil price I make that £27m gross?
Also note the comment: Payback times for capital costs are also forecast to be correspondingly rapid, being measured in months, much quicker than the several years many less productive onshore UK wells take to recover costs. Our future production business, therefore, looks set to be financially solid.
Also note for happy thoughts: Our prime post period 2019 operational focus is to bring Horse Hill into long-term production by our target date of the end of 2019. The first new horizontal Portland well, HH-2, is anticipated to be drilled in spring 2019 and to be put on long-term test thereafter. Upon the grant of the necessary long-term production consents, expected in autumn 2019, test production is planned to switch seamlessly into long term production, to be followed by up to two further horizontal producers and a reservoir pressure support well.