Questions for 2017 Annual Report Webinar, page-7

Hi Ravi,

How long is a piece of string. I tried to do some research on an average cost per well but the figures seems to be a little high IMO.

I found this part but it relates to some costs of drilling a well in the USA where costs are usually cheaper than ours. But that is also in USA dollars:

"While there have been instances when wells were drilled in as little as 15 days, a reasonable expectation for the time required to drill a well in the Eagle Ford is around one month. Based on a survey of operators in the region, drilling & completion cost per well are ranging from $5.5 to $9.5 million. The wide variation for drilling costs is dependant on such factors as the well's targeted depth, lateral lengths, number of laterals, and the number of frac stages deployed. Below we have provided a summarized estimate of both drilling and completion costs in the region."

I have done some more research and I managed to come up with a chart representing wells cost here in OZ. See below:




Again that seems a little too high form. Hence why I raised the question to @OilGasPlanning in the hope that he will be able to help.

I also found that there are three costs to be taken in consideration for a well drilling.
1) Site preparation,
2) Spadding, and
3) Costs of drilling which depends mostly on the time involved in drilling the well and to reach total depth.
4) Plus other ancillary costs.

Cheers