Where is your Money Going?
Drilling Costs
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Drilling Permit - $2,000.00
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Legal - $6,000.00
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Lease Hold Cost - $12,000.00
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Liability Insurance - $8,000.00
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Site Damages - $5,000.00
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Roads & Location - $10,000.00
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Drilling (Vertical) (Turnkey @ $25/ft. x 4,600ft) - $115,000.00
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Drilling Rig Day Rate (30hr @ $450/hr) - $13,500.00
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Drilling Water - $8,000.00
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Electric Log - $8,000.00
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Mud Log - $12,500.00
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Drilling “Mud” - $10,000.00
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Drilling Supervision - $15,000.00
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Miscellaneous - $10,000.00
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Roustabout Crew - $5,000.00
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Total Intangible Drilling Costs - $228,000.00
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Total Tangible Drilling Costs - $12,000.00
Total Estimated Drilling Costs - $240,000.00
Completion Costs
Tangible Completion Costs
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Production Tubing (2 7/8”)(4,600’@$5.00/ft) - $23,000.00
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Production Casing (5 ½”)(4,600’@$8.00/ft) - $37,000.00
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Production Wellhead/Flowlines/Valves/Fittings - $6,000.00
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Production Equipment: (Oil/Water Storage Tanks/Separator)(Surface-Sub-SurfacePumps/Packer) - $94,000.00
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Total Tangible Drilling Costs - $12,000.00
Total Tangible Completion Costs - $172,000.00
Intangible Completion Costs
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Casing Crew - $10,000.00
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Cement Production Casing - $18,000.00
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Cased Hole Perforation/CCL/Acoustic Log - $8,000.00
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Acid/Slick Water Frac - $20,000.00
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Worckover Rig (5 Days @ $2,280.00/Day) - $11,500.00
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Well Testing - $6,000.00
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Location Clean Up - $3,000.00
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Roustabout - $5,000.00
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Miscellaneous - $10,000.00
Total Intangible Completion Costs - $91,500
Total Costs
Total Estimated Drilling Costs - $240,000.00
Total Estimated Completion Costs - $251,500.00
Total Well Tangible Completion Costs - $172,000.00
Total Well Intangible Completion Costs - $319,500.00
Total Year 1 IDC Tax Deduction - $319,500.00
Total to Drill and Complete 1 Well:
$491,500.00