Lifetime financial data for a typical well in Bakken – revised

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%

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