The prices are very different in Australia and France.
In western continental europe a 50 tons rig costs minimum +- 8000 €/day (circa 13 500 AUD). 25 days = 337 500 AUD and the rig is naked !
You obviously have to add the drilling platform and access road (70 000 €), the mud (25000 €), the disposal and treatment of the wastes (10 000€),the casing , the cement, the mob/demob of the rig (150 000€), the geologist, the drillers, the fuel for the generator....
1.5 million € is a bare minimum for a vertical 1200 m well. But an exploration well can't be bare minimum. You need laboratory, coring, wireline, mud logging. let's say an overcost of 500 K€. Your explo well then costs 3.5 million AUD. The testing is not included (time, pump, testing crew, disposal of water).
A 50 tons can reach most of the objectives of EGL with vertical wells (1000-1300 m) (No shallow coal in Lorraine, Gardanne, or Jura)
A 90-120 tons rig is necessary to drill an horizontal extended reach. Nearly double the price. A multilateral could cost 4.5 million € (7.7 million AUD)...
And do not imagine that I am overestimating. There may be place for cost cutting but not so much unless methods change radically (Coil tubing?)
A JV seems to be contemplated for Gardanne. The partner will have to bring minimum 2 million € for a single well (3.5 million AUD). Wait and see.
Gazonor revenue will be used to refund CNP (26 million €), for gazonor projects (old wells + new wells+ electricity generation) and daily costs. Not much, if any, left for the rest.
EPG Price at posting:
22.5¢ Sentiment: None Disclosure: Not Held
