Just a small added note to the previous article:
"The typical Bakken well in Canada will cost approximately $1.7C million to drill and complete, is expected to have an initial production rate of as high as 300 bopd and recover 150,000 barrels of oil over its lifetime using a recovery factor of 15%. While only one-third of the Bakken formation lies on the Canadian side of the border, David Hume of Canadian Discovery Ltd. estimates that by using primary and secondary recovery techniques, 1.1 billion barrels of oil will be harvested from the Canadian Bakken."
Lanman, these numbers from the Canadian side of the Bakken seem to confirm NuTech Energy's review in that production would only be 200 to maybe 300 barrels per day with a lifespan of only 3 years per horizontal well. However, if the costs per well were in line with the Canadian numbers as well, then the overall net profit per well would still be very close to $3 million at $70 per barrel if the recovery were on the order of only 70,000 barrels per well. If the overall recovery rates were closer to the average well in Canada of 150,000 barrels then this would be closer to $8 million in profit per well.
Regards Paul
