You are uncovering some very interesting information… But you seem to not understand everything about the blue ridge dome.
Blue Ridge is a peircment type salt dome the dome is primarily water driven. Water driven reserves will produce at the same pressure (or very small decline) for the life of the well as long as it is regular maintained. However water production will increase and the oil/water contact line draws closer to the well head.
A big factor limiting the BOP of water driven reserves is that water will take the least path of resistance and could jump ahead of the oil in an effect called ‘coning’ this will probably eliminate the wells oil production. To avoid this mavericks wells must be limited to a well by well production figure as each well could potentially draw from a completely different zone and a salt dome could have 100’s of separate zones or reservoirs.
To exploit this there are no limits on well spacing’s on the blue ridge dome (im pretty sure anyway). So to extract the reserves they must drill many well close together.
1P reserves definition Reserves which on available evidence are virtually certain to be technically and economically producible.
2004 Model oil price $30 So if by some miracle the previous owners could drill a well for $250,000 or a dry well for $150,000 this is the results. 1 well producing 15 BOPD 15 x 365 = 5475 5475 BOPY x $30 WTI = $164,200
1 and a ½+ years till profitable….
2012 Model oil price $100+ complete well $250,000 or a dry well for $150,000 this is the results. 1 well producing 15 BOPD 15 x 365 days = 5475 BOPY x $100 WTI = $547,500
6-7 Months till profitable
So if we take economically producible seriously the top well would probably been plugged and abandoned in 2004 while the 2012 well profits nicely also it would have meant that the 2004 well and resulting oil would be considered uneconomical and not be 1P reserves…
I have checked this for error if I have made any PLEASE CORRECT ME im here to learn :)
FDM Price at posting:
$1.15 Sentiment: LT Buy Disclosure: Held
