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Permalink Reply by Brian Powers on January 11, 2016 at 7:06am

William -

The incremental cost to drill one lateral is a multi-faceted question to answer. One would need to build a well pad, set conductor pipe and install a wellhead, drill the surface hole, run and cement surface casing to protect fresh water zones, drill intermediate sections and run/cement liners or casing to just above the lateral kick off point, then drill out the liner shoe, build hole angle and azimuth to the desired lateral direction, then drill the lateral to desired depth, run and cement another liner with frac sleeves, etc.

I'm guessing the 50 to 60% of the well cost would be consumed just to get to the depth and orientation for the lateral, the rest would be to drill the lateral. Completion costs and completion hardware would be another set of costs.

Brian

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Permalink Reply by Mike Murphy on January 11, 2016 at 7:46am

then there is the expense to frack and make the lateral productive but most generally 6-10 million dollars

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