[ckilmer]

From the article:

“In the Monterrey formation, that expense might run to $5 million, and with every chance of yielding a dry hole.”
...............
I agree the geology is way complex and they have not yet cracked the code and they may never do so. But 5 million is on the low side for fracking wells. They’re glad to pay 5 million in the baaken and elsewhere.

Recently there are reports that the geologic code for the Tuscaloosa marine shale formation in Louisiana and Mississippi has been cracked. Current estimates are that that formation has 4 billion barrels of recoverable oil. (meaning that number is likely to go up as it closely track early estimates for baaken.) But they’re currently paying over 12 million for a well.

[thackney]

In the Monterrey formation, that expense might run to $5 million

- - - -

I would think that an average (or below average) price and not a maximum.

[Praxeologue]

In the Monterrey formation, that expense might run to $5 million, and with every chance of yielding a dry hole.

She lifted that from the anti-fracking articles that attempted to refute last year's USC study.