tte, what are you thinking?, page-3

Swami

On the surface, I thought the same as you, and thanks for actually including facts into the discussion, as previously all you would do is say one or two lines, so i like the new swami.


Just fYI, I did some calculations,

Let's say a 89% success rate

Therefore it will take around 26 drills to get 23 wells.

Each drill costs 500k (will be less IMO but lets say this)

We get 11 bopd for each well.

Therefore the cost of the 23 (26 drills) wells will be 13m

Production of 23 wells will be 11 bopd for each well

So 11*23*105(dollars per barrel) *365(days in a year) therefore with these 23 wells we would earn 10m a year

Therefore the cost of these wells will actually pay off themselves in around a year and a bit. Then the rest will be profit.

Make of this what you will, but just some quick calculations. Initial production will probably be more as well and will slowly decline to these rates.

GL all and cheers swami for the discussion