Nevtah/Tower Oil Intl.- NTAH Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Nevtah/Tower Oil Intl.- NTAH

NTAH 0.00400

-60.0%

Jul 24 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ditchdigger who wrote (2914)	8/14/1998 12:39:00 PM
From: Steve	of 3817

My post was about the Corsicana Shallow. This is an old OIL field with little gas left. My $3,000 estimate was for drilling and completion costs for these shallow wells there not gas production. Break-even on gas wells all depends upon drilling and completion costs as well as lease equipment costs and operating costs. Your theoretical break-even point generates a cash flow of about $16 million per year. There's not an existing well on Matagorda Island that produces at that rate today. Operating costs are a function of well depth. A shallow gas well like those on the Corsicana lease are likely profitable at well under 50,000 cft per day. Average annual operating costs for shallow gas wells in South Texas are about $10,000 per year. Concerning Matagorda: Once the well is completed a production engineer will run the numbers to determine if the well is economic to produce. The majors tend to abandon wells that independents would be glad to bring into production as the independents are willing to have a lower return on investment if cash flow is positive. Regards. Sources: IPPA, DOE, EIA

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next