Back to topic. TXN have the next EFS well ready to unload in 2...

Back to topic. TXN have the next EFS well ready to unload in 2 weeks.

Pop Quiz: But when does the price of oil make it uneconomical to drill and frac a $8-9 million dollar EFS well?

I think it's worth asking this as the current environment means TXN are about to unload two very expensive wells in not so good times for oil prices.

I recall break-even numbers around $60USD per barrel... Obviously flow rates, gas content etc all play a massive role.

Dips in the oil price may be temporary. But the first months of a well is when it matters most as the flows are giving up to 20% of their EUR. It would not be good to see TXN's new wells unload just as oil tanks below $70 for a few months.

Bear in mind EFS oilers can't just delay it the well production. Acreage holders are forced to drill to hold leases.

Personally I feel shalers may be some of the hardest hit oil companies in any prolonged down turn due to the expensive extraction costs and need to drill to hold leases.

Whether we are in for a long downturn remains to be seen... But prolonged market weakness / bad economic data may the price of oil below $80 for quite a few months.

I am not sure what this means for TXN (obviously not great!) and would be interested in any rough calcs

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DYOR and this is not investment advice!