Petron Energy II Inc (fka PEII)

[goeagy]

Well as far as 50$/barrel of oil we have to look at it this way. I would call that the initial cost. I have worked on wells that have pumped for years i mean 15 years without ever having to be touched. So if that well produced that oil for that long without any input cost then the cost per barrel ratio will be reduced dramatically. That is an extreme example of 15 years and not often that happens in my opinion. 1-5 years though is very common.

There are a ton of variables in cost to frac/workover. Im not sure if these wells flow on their own which is not likely but maybe with increased pressure they will thus not needing to run the pump jacks to produce them (or screw pumps if those are used there as well)

Other considerations in costs is there equipment in the hole or surface equipment. Are some or all or any of these wells suspended.

If there is equipment (pipe/rods) in the hole are they in good condition to use or are we spending to replace this equipment. Im not sure what depth these zones are at i probable could find out if we know what zones they are producing or at least get an idea. If you have to replace a string of pipe 60.3 mm 73mm and 88.9 mm can run from 150-300 per joint. A 1000 meter well roughly 115 joints of tubing say 60.3 mm is 17000$. These are rough numbers its been a few years since i've been in the loop of purchasing replacement equipment but this is just general idea and more to give those not in the know some insight as to what it takes to get a well put back online. So enough rambling on there. LOL

I dont recall reading anything or hearing Floyd say anything about drilling. I am pretty sure PEII owns its own service rig company though and there must be some benefits to owning them cost wise. Mobile double service rigs here are in the 550-750$/hour cost.

As far as drilling im sure it would be most feasible to hire a reputable drilling company to drill new wells. Western Energy is a large one and works in the states as well. HAHA they just bought the company i work for so i guess i had to throw that in there.

Wow almost a novel there. Go PEII