Ann: Transforming New Standard Energy , page-118

Slampoil

I think you are compering the wrong things.

USD 7.0 million cost of each well and total investment of USD 385 million is like a Capex.

With a US$385m your earnings would be;

Sale of a barrel is US$90 today and it will go up more by the declines in production over the years.

Cost of a barrel is about US$50 up there.

That gives us profit of US$40 per barrel.

THAT MAKES;
55 wells x 365 days x 300 boep net x USD 40 PROFIT per barrel of oil =
US$ 240 MILLION NET PROFIT EVERY YEAR.

I think it is viable to invest US$ 385m Capex for making US$ 240m a year.