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4,018 Posts.
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05/11/14
14:19
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You might find this interesting from Target Energy:
"In today's commodity price environment with oil prices in excess of $90, Permian Basin wells typically enjoy up to an 80% internal rate of return".
http://www.targetenergy.com.au/viewStory/project/Fairway Project - Permian Basin, West Texas
This implies that production costs for wells in this area are around $50 per barrel.
Still decent margins.
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