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Well-Cost-Sensitivity-chart-1211 EnerCom Analytics

Oil & Gas 360 Well Cost Sensitivity Chart: CLICK CHART TO ENLARGE

EnerCom’s Analytics Team ran an analysis of well costs for various basins. The “Current Well Costs” bar shown in the chart represents an average of actual 2014 well costs for a group of E&P companies operating in each basin. The next bar represents the analysts’ adjusted well costs to reflect a 20% IRR at the price level last month which was $3.81 gas and $74.34 oil. If the prices go to 3.50 gas and $50 oil, the third bar indicates the well cost that an operator would need to meet in order to maintain the 20% IRR.