Berea Horizontal Oil Economics Compared to ND Bakken Horizontal Oil

Started August 21, 2013 at 10:58 am by @IP in Rome Trough

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08/21/13 10:58:17AM

Ran some comparisons on economics from the ND Bakken Oil Play versus our Horizontal Berea Oil Play

Both Plays are Sourced from Devonian Shales withinin the Oil Windows

Bakken average well Cost (8.3 to 10.0 million dollars) Avg. $9,150.000.00 9.15 million

Average EUR 665,000 bbl

Producing Life 45 years

Average Pay Out 3 years

Berea Average well cost (600 to 700 thousand dollars) Avg. $650,000.00 650 thousand

Average EUR 40,000 bbl

Producing Life 25 years (per unnamed source may be an average economic cut off)

Average Pay Out (7-10 months) 8.5 month average (verbal unnamed sources)

Average Pay Out doubled to account for any "Spin" 17 months

You can drill 14 Berea Horizontals for the cost of 1 Bakken well and enjoy a payback time which is less than half of that in the Bakken.

The EUR's are also recovered in 25 versus 45 years which equates to 1.8 times faster recovery in the Berea.

If there was no "Spin" in the payback time reported from the unnamed sources, thenthe Berea providesmore than a 4 to 1 advantage over payback times inthe Bakken.

With the time value of money the Berea Horizontal wells should be "Significantly" more economic on a dollar for dollar basis.

One "Significant" additional benefit is that the transportation costs to the refineryshould be very low due to short transport distances of 10 - 50 miles inmost cases.




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