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re: Big baws move to dominate PermianPosted by redstick13 
on 8/6/19 at 7:00 pm to El Segundo Guy
on 8/6/19 at 7:00 pm to El Segundo GuyGood luck man. The latest news out today about China doesn't sound promising for the oil business.
re: Big baws move to dominate PermianPosted by El Segundo Guy 
on 8/6/19 at 7:06 pm to redstick13
on 8/6/19 at 7:06 pm to redstick13I hear you. Everyone is on board to sell but it will probably take 2 months to be able t get it cleared.
Either way it's all good. We weren't even aware of it until 2 months ago.
Either way it's all good. We weren't even aware of it until 2 months ago.
re: Big baws move to dominate PermianPosted by Gray12 
on 8/6/19 at 7:17 pm to redstick13
on 8/6/19 at 7:17 pm to redstick13Offshore is picking up right now. Russians have increased their offshore activities so have we and the Mexicans in the GOM.
In the next 5 years, oil prices will shoot up to $150. Nobody has done real exploration work in the last decade.
In the next 5 years, oil prices will shoot up to $150. Nobody has done real exploration work in the last decade.
re: Big baws move to dominate PermianPosted by castorinho 
on 8/6/19 at 7:23 pm to Gray12
on 8/6/19 at 7:23 pm to Gray12quote:oh, really?
In the next 5 years, oil prices will shoot up to $150.
re: Big baws move to dominate PermianPosted by redstick13 on 8/6/19 at 7:26 pm to Gray12
on 8/6/19 at 7:26 pm to Gray12You don’t need to do exploration when literally every hole you punch is a producer.
re: Big baws move to dominate PermianPosted by Gray12 on 8/6/19 at 7:40 pm to redstick13
on 8/6/19 at 7:40 pm to redstick13That’s true for the Permian but most companies are sinking because of horrible decline rates and not enough well spacing.
It takes about 3.5 mill to drill and another 4 mill for a 60 stage frack job. That’s 7.5 million, but you also have to pay to lease the acreage. An Acre can go up to $90,000 right now.
Let’s say 8 million dollars in Cost for 1 well.
You produce an average 6000 barrels per day your first 30 days. After 30 days, you are making around 500-600 barrels per day for the rest of your first year. At the end of that first year, you are now getting 80% water.
You get about 10-12 million in revenue after your first year but don’t forget that you have royalties to pay.
You are not making more than 12 million on 1 well after a few years of production for yourself. You still made 4 million in profit but that’s not enough to fund another well. Hence you have to ask for more investment. Therefore, you have no positive cash flow.
Offshore, your well will cost you at least 60 million dollars, but you are easily getting 10,000 barrels of oil a day on average for a few years. Exponentially higher investment but if your wells are good, you are going to make billions in revenue if you have 15-30 good producing offshore wells.
It takes about 3.5 mill to drill and another 4 mill for a 60 stage frack job. That’s 7.5 million, but you also have to pay to lease the acreage. An Acre can go up to $90,000 right now.
Let’s say 8 million dollars in Cost for 1 well.
You produce an average 6000 barrels per day your first 30 days. After 30 days, you are making around 500-600 barrels per day for the rest of your first year. At the end of that first year, you are now getting 80% water.
You get about 10-12 million in revenue after your first year but don’t forget that you have royalties to pay.
You are not making more than 12 million on 1 well after a few years of production for yourself. You still made 4 million in profit but that’s not enough to fund another well. Hence you have to ask for more investment. Therefore, you have no positive cash flow.
Offshore, your well will cost you at least 60 million dollars, but you are easily getting 10,000 barrels of oil a day on average for a few years. Exponentially higher investment but if your wells are good, you are going to make billions in revenue if you have 15-30 good producing offshore wells.
This post was edited on 8/6 at 7:42 pm
re: Big baws move to dominate PermianPosted by DeCat ODahouse on 8/6/19 at 8:00 pm to texag7
on 8/6/19 at 8:00 pm to texag7quote:
We are Sandbox bitch
Make that 250 million dollar Sandbox, bitch!
re: Big baws move to dominate PermianPosted by dinosaur on 8/6/19 at 8:04 pm to EveryoneGetsATrophy
on 8/6/19 at 8:04 pm to EveryoneGetsATrophyExxon bought XTO Sorry didn’t read the next few posts
This post was edited on 8/6 at 8:10 pm
re: Big baws move to dominate PermianPosted by redstick13 on 8/6/19 at 8:20 pm to Gray12
on 8/6/19 at 8:20 pm to Gray12quote:
but you are easily getting 10,000 barrels of oil a day on average for a few years.
Not many offshore wells produce 10,000 bbl/day and the costs to bring that production to a refinery are exponentially higher. WTI $ per bbl is the same for offshore as it is for land.
This post was edited on 8/6 at 8:23 pm
re: Big baws move to dominate PermianPosted by GREENHEAD22 on 8/6/19 at 8:30 pm to redstick13
on 8/6/19 at 8:30 pm to redstick13Yea and even though rig and service rates have come way down 60M is not going to cover a DW well.
re: Big baws move to dominate PermianPosted by GoldenD on 8/6/19 at 8:50 pm to GREENHEAD22
on 8/6/19 at 8:50 pm to GREENHEAD22Wells are drilled under $60MM in the GOM are certainly possible, especially if you look at TLP type facilities with low burn rates. Granted, there is a huge initial infrastructure cost to start.
re: Big baws move to dominate PermianPosted by dkreller on 8/6/19 at 8:55 pm to GREENHEAD22
on 8/6/19 at 8:55 pm to GREENHEAD22quote:
was thier gameplan all along. Let the independents do all the leg work and find the sweet spots. Run themselves broke trying to keep their stock prices up then the majors will sweep them up on the cheap.
And use their market share to drive up oil prices
Winning
quote:
Wells are drilled under $60MM in the GOM are certainly possible, especially if you look at TLP type facilities with low burn rates. Granted, there is a huge initial infrastructure cost to start.
Still have to complete them baw
re: Big baws move to dominate PermianPosted by redstick13 on 8/6/19 at 9:00 pm to GoldenD
on 8/6/19 at 9:00 pm to GoldenDThey are. In fact Shell has been drilling reentry wells on Auger this year but those wells are not touching 10,000 bbl/day. The guy he was responding to was mentioning exploration. Exploration wells have none of the infrastructure in place to bring any potential discoveries to production. That involves an enormous investment and years to bring online.
Exploration for Exxon Mobil in Guyana began in 2008.
They knew all along but only announced in 2015. It’s looking really good for them. About 300 ft. Thick high quality sandstones that contain more than 700 million barrels of oil.
They knew all along but only announced in 2015. It’s looking really good for them. About 300 ft. Thick high quality sandstones that contain more than 700 million barrels of oil.
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