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The EOG Eagles Ranch well cost is entered in the database.  It is $11,941,039.  I agree RM, it's way too early to draw any conclusions.  We need more data which will only come with more wells.

Thanks Skip - I forgot (again) that this info is in SONRIS.

Remember that EOG drilled and cored and logged a pilot hole before drilling the Avoyelles Parish well. This added about $2 Million to the well costs as I see it.. It took them two months to drill this pilot hole - and based on SONRIS, they had some mechanical problems.

But the remaining $10 Million is still way too high for a lateral like this. Figure that they had a lot of issues with drilling that lateral and getting it completed.

Thanks again

You're welcome, RM.  We often focus on production rates and volumes but that is what the non-professional members see as the important metric.  It equates to royalty revenue.  It is easy to forget that a company has to make a profit and that the well cost is the prime consideration.  I'm not put off by a ~$12 million cost for the first EOG exploration well however a development well cost in the $6 to $7 million range would make the odds for an economic play much more likely.

Skip:

Easy to forget for who?  The folks drilling the wells?  Or, the folks who can't understand why there drilling activity "suddenly dries up" at times?

Dion~

The latter.

Skip:

Smh...  One would think that after ten years here that we would have reasonably established for all parties that E&P companies consider potential profitability when assembling prospects and implementing drilling programs, which includes margins for costs of drilling and completion operations all the way down to acquisition of land rights and lease burdens.  Maybe it's just hope.

Hope springs eternal.  You'll have to query those other parties.

Yes, way too early, time, temperament and learning curve will tell the story!!!

In other news, WTI just broke into $70 territory. (I do understand AC produces LLS, but everybody seems to be watching WTI.)

Gotta love that trend!!!!! It can only help things

But people will complain about the results of this when the go and fill up!

I think that $70.11 is a futures price.  The spot price for WTI Friday was $68.45.  Regardless keep in mind that settlement prices are discounted from a base price so that what is actually paid is something less than the base price.  90% of NYMEX is often in the ballpark for contract sales.

11,000,000# divided by a perforated lateral length of 4275' = ~2,573# of sand pumped per linear foot.

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