Previous posts here and here covered some of the info from a presentation by Mr. Lynn Helms, North Dakota’s Director of Mineral Resources, at the Williston Basin Petroleum Conference on May 25, 2012.
The presentation had more information on the dollar impact of a typical well in Bakken. The additional info allowed me to rearrange the data into an income statement. I am an accountant after all.
I previously discussed this in another post. I’ll refine that analysis in this post.
Here is the income statement for a typical well over a full lifetime of production, based on the data in the presentation.
| revenue | expenses | subtotal | % of | |
| revenue | ||||
| revenue | 44,410,000 | |||
| drill & complete | 7,925,000 | 18% | ||
| margin after drilling | 36,485,000 | |||
| ongoing production costs: | ||||
| salaries | 2,100,000 | |||
| operating expenses | 2,300,000 | |||
| remaining lifetime production costs | 4,400,000 | 10% | ||
| royalties | 7,500,000 | |||
| total royalties | 7,500,000 | 17% | ||
| taxes: | ||||
| gross production taxes | 2,200,000 | |||
| extraction tax | 2,000,000 | |||
| sales tax | 385,000 | |||
| total taxes | 4,585,000 | 10% | ||
| total | 44,410,000 | 24,410,000 | ||
| net profit | 20,000,000 | 45% | ||
3 thoughts on “Lifetime financial data for a typical well in Bakken – revised”