Nice analysis Charlatan...I have a couple of questions though. One thing you mentioned in the analysis was...
"So once the rework of each well has been done in theory from this one lease alone we will have 119 wells. We take 119 wells and multiply by 2.2 which is the average daily yeild of marginal wells in Oklahoma."
Do we/you know the cost of each 'rework'? I have to assume that that would include the unplugging of the wells, equipment usage and the accompanying wages to be paid during the process, installing a wellhead/valve/pump, storage facilities and some sort of system to deliver the oil to market unless it's simply going to be trucked in and has already been included in your analysis.
Also, assuming every well is unplugged and produces the avg 2.2 barrels overall, how long will it take before this 'full production' level is reached? They can't do them all simultaneously obviously.
Also....what is the avg lifespan of these newly reworked wells? Is there some avg we can use to determine an estimated total production life/barrel count for each of them?
TIA
McBUSHIE'S choice of Palin was irresponsible, dangerous and insulting to America's intelligence. That choice and his continuing smears/lies prove he'll do anything to win this election even to the point of endangering his own country.DEFEAT HIM!
AI
