Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on March 30, 2018 at 8:02

Here's what I know from recent research.  Range is down to one rig from four a few months back.  Industry friends have speculated that Range is looking for a buyer for its north Louisiana assets.  The Range Terryville well designs have under performed those of MRD and Wildhorse and the company has admitted such in its corporate presentations.  Although I knew a little about the Jackson Parish wells announced complete to date, I did a little extra research.  The last three wells reported had very high costs:  $20+M, $13.5M and $14.6M.  Even if these wells performed along the lines of the Terryville wells, they would not be economic at those well costs.  Unlike the Terryville wells, there is no reported liquid volumes which hurts the economics.

With these facts in mind, it is surprising but encouraging that someone is out offering new leases.  My question would be, is it Range?

Permalink Reply by Ryan Kennedy on April 3, 2018 at 12:50

Thanks for the info. Is it possible that the well costs were so high because of all the testing they went through?  How much would testing cost in addition to normal well costs?

Permalink Reply by Skip Peel - Mineral Consultant on April 4, 2018 at 8:14

I'm unsure of what "testing" you are referring.  The well costs are limited to the actual drilling and completing of the well.