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Wednesday, July 02, 2014 10:51:39 PM
CONFIRMED: Ergon purchases oil at market price
Straight from SEC filings:
Ergon Refinery purchases all the oil produced at market
At the Rice lease, that means $104.48 (current) per barrel at current prices. With an estimated 25,353 barrels per well @ $104, we're talking $2.6 million @ 82.5% royalty, which comes to $2.175 million per well. 10 year production estimate is 6,340 barrels per well based on nearby production. That's $659K @ 82.5%, which is $543K per well for the first 10 years. The other four wells that Vencedor drilled at Rice a couple years ago produced 1388 barrels the first month, or about $144K @ 82.5%, which sums up to $119K the first month at current prices.
So given past drilling results... I'm expecting Rice #15 to output something like ~350 barrels, so maybe $36K the first month.
Straight from SEC filings:
Ergon Refinery purchases all the oil produced at market
At the Rice lease, that means $104.48 (current) per barrel at current prices. With an estimated 25,353 barrels per well @ $104, we're talking $2.6 million @ 82.5% royalty, which comes to $2.175 million per well. 10 year production estimate is 6,340 barrels per well based on nearby production. That's $659K @ 82.5%, which is $543K per well for the first 10 years. The other four wells that Vencedor drilled at Rice a couple years ago produced 1388 barrels the first month, or about $144K @ 82.5%, which sums up to $119K the first month at current prices.
So given past drilling results... I'm expecting Rice #15 to output something like ~350 barrels, so maybe $36K the first month.
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