Outrun Change

We need to learn quickly to keep up with the massive change around us so we don't get run over. We need to outrun change.

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           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%
 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%

Single Post Navigation

3 thoughts on “Lifetime financial data for a typical well in Bakken – revised

  1. Pingback: Expected lifetime production data for a Bakken well « Outrun Change

  2. Pingback: Forecasts for Bakken field. Part 1 « Outrun Change

  3. Pingback: Estimate of lifetime financial performance of one Bakken well | Outrun Change

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: