Quote:
Originally Posted by Cajundaddy
but I would look hard at independent geology reports first. What size are the reserves? For how long? At what delivery rate? $10k seems like a mighty small stake in the oil game so my guess is this well is nearly done, and far in the red operationally at $30/bbl.
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Historical reports would provide a solid hint of the decline rate.
What would it cost to perform seismic testing? $10-30k? What was the original basis for drilling? I have heard geologists joke about aiming at a syncline.
Even if a stripper well, OP needs 111 bbls per year to break even @ $30/bbl not counting cost of money or op costs.
He should have enough data for trending.
I say go for it if it seems palatable.