That is the price to put the hole in the ground. If you want to connect it to production, separate the oil, gas and water produced, pay the energy to run pump, pay the labor to keep all of that running, that is extra. Plus you need to pay the lease and exploration to find that next production or you are going out of business.
It’s just a back of the napkin estimate to begin to examine what they were quoting. It wasn’t intended to be used to run the company, just what the oil costs to get it out of the ground. Certainly their $86 a barrel cost is pretty stupid for land production.
THANK YOU!!