Larry, Do your figures include the ThreeForks?
On Oct 19, 1:37 pm, Larry <[EMAIL PROTECTED]> wrote: > While $20 oil price in Mountrail County sounds very low to be the > breakeven price, it does compute for the EOG wells in Parshall Field > and many of the Whiting wells in Sanish Field. But it does not apply > to other areas of Mountrail County. > > Deduct 25% from the $20 oil price for royalties and taxes, divide that > number ($17.50)into $5 million and it requires 285,714 barrels of oil > production from a well. > > Most of the EOG wells in Austin, Wayzetta, and Parshall Townships will > easily produce 300,000 barrels in the first three years of production. > > On the other hand most of the wells outside of the Parshall/Sanish > Field core areas in Mountrail County will never produce 300,000 > barrels in their lifetime. > > On Oct 19, 11:42 am, dkwilk <[EMAIL PROTECTED]> wrote: > > > > > Maybe as a resident of the area you should put a nickel into you local > > state representative, to introduce this type of legislation. There is > > a lot more then on single part on the matter. Look at all the tax > > collected from , Lease, income tax for employment, to hotel,motel tax > > to on and on and on..the area of divide,mountrail, williams, burke, > > dunn, Bowman counties have not seen this type of growth and income > > since the 80's. JMHO.. don > > > On Oct 19, 8:07 am, jajones422000 <[EMAIL PROTECTED]> wrote: > > > > what does everyone think about the threeforks prospects in se divide > > > and ne williams co ? have not the yields been good enogh to continue > > > drilling those ? perhaps the state needs to renew less taxes on the > > > first 50,000 bbls to forestall another bust. there still is only a > > > small amount of over supply in the world ,so a modest cutback by a big > > > producer or a major disruption somewhere and oil would shoot upwards. > > > On Oct 19, 7:40 am, dkwilk <[EMAIL PROTECTED]> wrote: > > > > > This artiicle appeared in todays Bismarck tribune. don > > > > > Oct 19, 2008 - 04:05:15 CDT > > > > By BRIAN DUGGAN and LAUREN DONOVAN > > > > Bismarck Tribune > > > > A dramatic decline in the price of oil is good news for consumers, but > > > > it will likely chill the hot action across some areas in North > > > > Dakota's Bakken oil formation. > > > > > With an estimated recoverable reserve of 4.3 billion barrels, the > > > > Bakken and associated oil layers have attracted dozens of drillers and > > > > 85 rigs into the state, the most since the last oil boom in the early > > > > '80s. > > > > > Strong prices for oil, including this summer's all-time high of more > > > > than $160 a barrel, helped lubricate a play in which one well alone > > > > costs as much as $5 million. > > > > > With oil now touching in at $70 a barrel, it's likely some producers > > > > will pull away from areas where they had been looking to expand. > > > > > Lynn Helms, director of the state's Department of Natural Resources, > > > > said he doesn't expect changes in the main core of the Bakken - Dunn, > > > > McKenzie and Mountrail counties - but acknowledges the perimeter of > > > > the Bakken play could be affected. > > > > > "This oil price is going to dampen expansion of the play but it's not > > > > going to lead to collapse of the Bakken play or the play going away," > > > > Helms said. "The main areas are very solid." > > > > > Helms said the expansion areas are in trouble. However, he said there > > > > is no single oil price floor that applies statewide. > > > > > The old rule of thumb of $65 to $75 a barrel to support the Bakken is > > > > less true with drilling technology that increases well output from an > > > > average of 250 barrels two years ago to 650 barrels a day today in > > > > some places. > > > > > "Mountrail is performing so well with the new technology that break- > > > > even prices for those kinds of wells is down around $20 a barrel," > > > > Helms said. Those wells used to break even around $60. > > > > > "Mountrail is the exception to the rule," Helms said. > > > > > For Dunn and East McKenzie counties, where 32 rigs are in operation, > > > > the break-even price is about $40 a barrel. > > > > > Trouble spots are in Burke County at an $80 break-even range and > > > > Divide at $55, along with Ward and McLean counties, he said. > > > > > "The core areas where we've got 60 rigs running are very solid even at > > > > these oil prices. But for the outlaying areas - Divide, Burke and > > > > Williams - it's a very different picture," Helms said. > > > > > Oil companies are reticent to talk about their positions, especially > > > > publicly traded companies that are vulnerable to rapid dynamics in the > > > > stock market. > > > > > Two of those - Marathon Oil and Continental Resources, both actively > > > > drilling the Bakken in Dunn and McKenzie counties - are scheduled for > > > > quarterly conference calls with stockholders and market analysts and > > > > may comment on market conditions and drilling plans then. > > > > > Continental's spokesman said the company will talk after its Nov. 6 > > > > conference call, and Marathon's spokeswoman said her company hasn't > > > > announced any change in its Bakken plans, and projections will be > > > > included in its January budget. > > > > > Rick Ross, vice president of operations for Whiting Oil, which is > > > > drilling in the Mountrail County portion of the Bakken, said his > > > > company has drilled "very prolific" wells there "and we can stand a > > > > lower price than in other places." > > > > > Ross said each company has its own tolerance in the market. > > > > > "It's not that we all fall off the table at once," he said. "There's a > > > > huge range." > > > > > He said his company has not made a decision to slow down. "I don't see > > > > it changing for us," Ross said. > > > > > Whiting has 22 completed wells and eight in various stages of drilling > > > > and completion. Half of its 190,000 leased acres are in the Sanish and > > > > Parshall fields on the Bakken. > > > > > Ron Ness, head of the North Dakota Petroleum Council, said that while > > > > price tolerance varies from one oil company to the next, he is hearing > > > > concern, not only from drillers, but secondary businesses that support > > > > the industry. > > > > > "I have heard a lot of nervousness," Ness said. "The threshold for > > > > each company will be different." > > > > > The canary in the oil "coal mine," is generally leasing activity, he > > > > said. When mineral acreage leasing falls quiet, it's a sign > > > > something's amiss. > > > > > McLean County recorder Dewey Oster said he has seen less foot traffic > > > > from landmen researching minerals acres, but he doesn't know whether > > > > it's due to available land all leased up, or less interest in that far > > > > range of the Bakken play. > > > > > Brenda Cook, the recorder for Mercer County - an expansion zone where > > > > leasing had been fairly hot and one rig moved in last month - said > > > > she's seeing half the number of landmen in the past few weeks. > > > > > She said she thinks oil prices are one aspect, but says, "They may > > > > have leased up the land they're looking for." > > > > > Landmen tend to be tightlipped, she said. > > > > > In Dunn County, recorder Chris Larsen said she's recording 20 leases > > > > day, down from a peak of 50. > > > > > She thinks it's less a price issue than one of opportunity. > > > > > "I think it's because everybody is pretty much leased up," she said. > > > > > (Reach reporter Lauren Donovan at 888-303-5511 or [EMAIL PROTECTED])- > > > > Hide quoted text - > > > > - Show quoted text -- Hide quoted text - > > > - Show quoted text -- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Bakken Shale Discussion" group. 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