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To: Donald Rumsfeld Fan
That's 10 barrels per day at $140 sounds pretty good to me. That's $511,000 annual income from one well. Not bad.
45 posted on 07/06/2008 2:14:45 PM PDT by Donald Rumsfeld Fan ("Sincerity is everything. If you can fake that, youÂ’ve got it made." Groucho Marx)
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To: Donald Rumsfeld Fan
That's $511,000 annual income from one well. Not bad.

It's great, except you have to factor in all the deductions and expenses.

Not only are there all the taxes, royalties, and regulatory compliance costs, but there are operating expenses. A ten barrel a day well isn't flowing to the surface by itself. It has a $100 thousand pumpjack. Maybe more or less depending on the depth where the oil is coming into the wellbore.

It doesn't get to the surface for free.

If you have to schedule a workover rig to go out and work on that well making $500,000 a year more than once a year, you're going to go broke.

49 posted on 07/06/2008 2:48:09 PM PDT by Dog Gone
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