Tomas, hello
6 wells and no gushers. Gee, let's give up and go back to roofing.
But first, the numbers. 140 million barrels, minimum required to ante up? What?
Figure 3000 m average well depth, at $150K/day average operating spread cost for a floater in remote areas. Average cost/well: $4.5 million. I've operated in extremely remote areas for this cost, it's not unreasonable. And 30 days for a 3000 m well is also not unreasonable. Add the same amount again for casing and wellheads and rig mob/demob, you get an average well cost of $9.0 million. That's reasonable.
$20-25 million/well? What for? The steep part of the learning curve should be behind these guys by now.
No,no. Give me a field of 40 million STB, some subsea completions, and a FPSO and there will be a profit.
If they've found oil and gas shows, source rock, and favorable reservoir rock, then they'll be back. Now it's time for another round of 3-D seismic, 1 - 2 years of processing and interpretation, a few non-chalant additional acreage acquisitions, and (with oil back around $18/bbl) aggressive drilling by 2001.
I'll bet you a cold beer the parties involved are keeping rueful smiles plastered firmly in place while kicking each other under the table.
Best of Luck
Aggie |
