strikemedead, Note that figure quoted is for the marginal...

strikemedead, Note that figure quoted is for the marginal cost/bbl which GGP's wells may qualify for, of course wells producing say 20,000 bbls/mth are not marginal producers and have much higher economies of scale than those currently producing through GGP.

"Oil Production Costs Are Heading Towards $100 per Barrel
October 11, 2012 By Joseph Gitter
Bernstein Research has analyzed projected ongoing production costs for the 50 largest non-OPEC oil producers and found that — surprise, surprise — “the era of cheap oil is over”:

Tracking data from the 50 largest listed oil and gas producing companies globally indicates that cash, production and unit costs in 2011 grew at a rate significantly faster than the 10 year average. Last year production costs increased 26% year over year, while the unit cost of production increased by 21% year over year to US$35.88/bbl. This is significantly higher than the longer term cost growth rates, highlighting continued cost pressures faced by the E&P industry as the incremental barrel continues to become more expensive to produce. The marginal cost of the 50 largest oil and gas producers globally increased to US$92/bbl in 2011, an increase of 11% year over year and in-line with historical average CAGR growth. Assuming another double digit increase this year, marginal costs for the 50 largest oil and gas producers could reach close to US$100/bbl.

While we see near term downside to oil prices on weaker demand growth, the longer term outlook for higher oil prices continues to be supported by the rising costs of production..."