Thanks Rob, yes excluding hedging - looks like we are real close on Cash Margin.
Buc, two I know of are COP & EOG. Below is a slide from COP which states their
full cycle F&D cost ~$20/BOE for EFS & Bakken. Really have to know what breakeven cost are ANZreferring to.
That is of course in stark contrast to SSN where the last presentation I've seen their full cycle F&D costs stated as $69/BOE. And they have plenty of company in this >$60 range. That's why so many don't want to talk full cycle costs and prefer to talk only cash costs (as if the sunk costs don't matter).
Maybe a brand new company drilling a brand new wells - so lets say in the Bakken, who picked up sweet spot core acreage and paid say $30,000/acre for 160 acres ($4.8M) sunk a $8.4M for 800MBOE well (so far $13.2M and for Net 600MBOE). That's your half cycle cost at $22/BOE.... now operate your well with LOE+ProdTax (10%)+G&A costs and no debt finance (all equity) ... lets say for a real focused producer (not a sideshow) that's another $15/Boe... now you're looking at $37/BOE full cycle - which is a really good number.
You would expect CLR, WLL, PXD, CXO, CHK, MRO, CVX to be able to get down around that $20 number but you need a heck of a lot of scale and early acreage acquisition.
Slides from COP
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