"In the Bakken, for a 18,000 ft horizontal well (10,000 ft vertical + 8,000 ft lateral) after you buy your acreage, it costs roughly $4-6 million to drill, and another $4-6 million to complete (frac + drill out + artificial lift) plus another $500K for surface facilities (tanks, treaters, lact, etc). So all in, for a company that drills 100 of these wells per year and has their technique and efficiency down to an art, it costs in the range of $8-12 Million per well.
The most common metric to compare well costs is well cost/1,000 ft. lateral. With this metric, a 10,000' lateral well can be compared to a 7,500' lateral more accurately. It must be noted that the cost/1,000 ft. metric doesn't account for the fixed vertical depth of the well regardless of lateral. The 2014 Permian cost/1,000 ft. was between $1.1MM and $1.4MM. Current data from six Permian producers show the cost/1,000 ft. around $970k."
And yes, all of the costs above are in USD too, not in AUD. So calculate all of that back into Australian Dollars before making any comparisons.
Most importantly though, take notice that "Bakken has lowest average drilling and completion cost".
And in Australia the wells drilling are usually more expensive than in the US of A.
Now where is that money coming from.??
Just dyor!!
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