zguy--you are correct, Sir! Good catch!
Either my finger or my brain cramped and I made a math error making my estimates too conservative.
Here are my corrected estimates:
300mcf/day rev
x$7 per mcf
x 30 producing days/month = $63,000 gross rev
400mcf/day rev
x$7 per mcf
x 30 producing days/month =$84,000 gross rev
That equates to $756,000 to $1,008,000 per well per year GROSS revenue.
After you deduct taxes, service charges, pipeline hookup fees, BTU adjustments, etc (costs associated with selling the gas to the market) net normally approximates 75% of gross revenues.
Net Rev= $1575 per day to $2100 per day
Net Rev= $47,250 per month to $63,000 per month
Net Rev= $567,000 per year to $756,000 per year
Note: Associated Drilling costs need to be figured as a one time expense, and operating costs need to be considered when computing on-going profits.
Operating costs for gas wells are CONSIDERABLY lower than for oil wells as the equipment is more reliable and has less down time than oil well equipment.
ALL FIGURES ARE PER WELL in the Montgomery County target formation they mentioned in the PR.
Bottom line, if you were happy with $600-700 per day per well, you can be ecstatic at the more accurate figures of $1575-2100 per well per day.
Hmmm...now, just how many wells make sense???
zguy...thanks for making me recheck my numbers.
Sincerely,
xtrapink
xtrapink
(long, strong and very pink)
