Kansas Oil and Gas Exploration 10 Year History & Future Strategies

Kansas Oil and Gas Exploration
10 Year History & Future Strategies
Kansas Oil and Gas Production
# of Wells drilled by Year
MCF/Mnth
100,000,000
Entire State
Hugoton Embayment Infill
61
3661
3616
3152
3060
10,000,000
49
BBLS/Mnth
2864
2394
2.0
2034
1863
1752
1513
1622
1,000,000
423
409
260
409
192
461
242
309
143
388
298
326
833
100,000
YEAR 1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
‘97
‘98
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Exploration Activity
1987 to 1996 Well Completions by County
(All Wells)
98
130 93 38 79
46 11 3
38
1
19 241 208 492 426
7
96
3 15 7
172340
3
2
133 208 433 334 589
54
411
99 552
8
21
88
30
6 305 284
195 39 166 424 906 329
422
203 73 56 204 33
99 786 428
199 679 864 181 206 690
326 55
141
287 503 590 167
66 124
555
445 724 703
208 384 169 115
363 235 41
221
595 991 716 233 182 224 464
183 344 387 755 800 299 4
Hugoton Embayment
2
WC & SC Kansas
2
Eastern Kansas
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Exploration Activity
EUR NEB (Millions) by County
1987 to 1996 Well Completions
122 MM bbls oil
NEB Conversion: 6 mcf = 1 bbl
2.2 tcf gas
Eastern
Kansas
3.1% of NEB
0.6 6
1.8 7
0.1 9
0.1 0
0.3 3
0.5 2
3.4 8
3.2 2
1.8 6
1.2 9
1.4 0
0.1 9
2.6 9
1.3 7
2.3 5
1.9 1
0.4 0
1.6 1
2.0 4
1.3 4
0.2 5
0.5 0
2.1 7
6.2 8
2.8 4
6.5 6
36 .1 8
36 .5 5
0.8 5
2.6 1
0.8 9
33 .8 3
61 .3 8
40 .1 0 81 .3 9
43 .1 0
6.5 3
1.1 7
36 .7 2
3.6 3
9.5 3
2.4 0
0.0 3
6.7 6
3.9 3
1.7 8
0.5 8
0.0 0
0.0 3
0.0 1
0.5 2
0.1 6 0.0 5
0.2 8
1.3 3
1.4 4
0.0 0
0.0 2
0.8 3
Hugoton
Embayment
83.0% of NEB
89% Gas
50% Oil
0.0 1
0.3 4
0.3 2
WC & SC
Kansas
9.7% of NEB
1,381 bcf - Hugoton Infill
856 bcf - all others
0.0 3
0.7 2
0.7 1
0.0 1
0.9 4
0.4 1
0.3 7
0.5 3
0.0 7
0.5 4
0.1 5
0.0 1
1.9 2
0.2 2
0.3 6
0.6 9
1.3 4
4.3 8
8.8 0
0.3 5
2.6 0
2.4 7
0.4 7
1.7 4
1.4 8
1.8 8
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Exploration Activity
Well Completions by Year
Hugoton-Panoma-Bradshaw-Greenwood (HPBG) Infill Wells
500
SERVICE
450
GAS
# of Completions
400
DRY
350
300
250
446
200
150
376
386
377
409
281
291
219
248
100
164
50
0
1987
1988
1989
1990
1991
1992
Year
1993
1994
1995
1996
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Exploration Activity
EUR Gas (BCF) by County
1987 to 1996 HPBG Infill Well Completions
7
0
143
39
191
74
331 115
75
347
Total EUR: 1,381 bcf
58
EUR = Current Cumulative + (Current Monthly * 60)
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Exploration Activity
Average Welltest Shut-in Pressure
Hugoton Field
500
Original Wells
450
Infill Wells
400
Average SIP (psi)
350
Original Wells
Cum. Production
21.7 tcf
300
250
200
150
100
Infill Wells
EUR: 1,381 bcf
50
1925
1935
1945
1955
1965
Year
1975
1985
1995
2005
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Exploration Activity
1987 to 1996 Well Completions by Year
No HPBG Infill Wells
4000
SERVICE
3500
O&G
599
3000
# of Completions
GAS
752
OIL
702
2500
494
DRY
617
1327
2000
421
1544
1087
1500
1344
1083
409
686
904
617
755
1000
495
522
463
740
600
526
557
1993
1994
1995
1996
1663
1215
500
1107
1208
1123
871
411
0
1987
1988
1989
1990
1991
1992
Year
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Exploration Activity
1987 to 1996 Well Completions by County
(No HPBG Infill Wells)
WC & SC
Kansas
98
130 93 38 79
46 11 3 Eastern
38
1
Kansas
19 241 208 492 426
7
96
3 15 7
172340
3
2
133 208 433 334 589
54
411
99 552
8
Hugoton
21
88
30
6 305 284
Embayment 164 39 165
424 906 329 422
203 73 56 204 33
99 786 428
35 147 442 181 206 690
326 55
141
287 503 590 167
66 124
555
241 126 391
208 384 169 115
363 235 41
221
331 366 477 233 182 224 464
183 344 387 755 800 299 4
2
2
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Exploration Activity
EUR NEB (Millions) by County
1987 to 1996 O&G Well Completions (No HPBG Infill)
Eastern
Kansas
15.2 mmNEB
WC & SC
Kansas
47.7 mmNEB
0.7
1.9
0.3
3.5
0.2
1.9
1.3
1.4
2.7
0.1
2.3
1.6
0.5
1.9
2.0
0.0
0.4
1.3
0.0
0.0
0.0
0.5
Hugoton
Embayment
146.8 mmNEB
2.1
0.2 1.3 2.2
6.3
2.8
2.6
0.8
0.1
4.4
12.6
0.9
21.5 6.2 17.5
27.6 23.5 33.4 9.5
0.8
1.3
6.5
1.4
1.2
3.6
2.4
6.8
4.4
8.8
3.9
0.0
0.0
0.3
0.0 0.0 0.0
0.0
0.0
0.3
0.0
0.0
0.3
0.0
0.7
0.0
0.7
0.4
0.3
1.3
2.6
2.5
0.3 0.0 0.0
0.0
0.0
0.7
0.5
1.7
1.5
1.9
0.0
0.6 1.8
0.0
0.0
0.0 0.5
0.0 0.2 0.0
0.0 0.9
0.4
0.4 0.5
0.1
0.5 0.1
0.0
0.2
0.0
1.9
EUR = Current Cumulative + (Current Monthly*48) / NEB Conversion: 6 mcf = 1 bbl
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Exploration Activity
EUR Oil (Million BBLs) by County
1987 to 1996 Oil Well Completions (No HPBG Infill )
0.2
Eastern
Kansas
7.8 mmBBL
0.0
3.4
WC & SC
Kansas
34.7 mmBBL
0.2
1.9
1.3
1.4
2.7
0.1
2.3
1.6
0.5
1.9
2.0
0.0
0.4
1.3
0.0
0.0
0.0
0.3
1.9
0.2 1.1 2.2
6.3
1.3
2.3
0.5
0.0
Hugoton
Embayment
53.6 mmBBL
1.9
3.6
12.4
0.9
3.9
5.8 8.8
5.6
4.4
9.1
0.8
0.6
4.9
0.5
0.9
0.7
0.7
0.6
2.3
3.0
1.2
1.7
0.0
0.0
0.0
0.0 0.0 0.0
0.0
0.0
0.2
0.0
0.0
0.3
0.0
0.3
0.0
0.2
0.3
0.3
1.3
0.4
0.5
0.3 0.0 0.0
0.0
0.0
0.6
0.2
0.7
1.0
EUR = Current Cumulative + (Current Monthly*48)
0.9
0.0
0.3 0.5
0.0
0.0
0.0 0.5
0.0 0.0 0.0
0.0 0.9
0.4
0.2 0.2
0.1
0.1 0.0
0.0
0.0
0.0
0.3
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Exploration Activity
EUR Gas (BCF) by County
1987 to 1996 Gas Well Completions (No HPBG Infill )
2.9
Eastern
Kansas
43.0 BCF
1.9
0.4
WC & SC
Kansas
88.8 BCF
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.0
0.0
0.0
0.0
0.0
1.2
0.7
0.0 1.4 0.0
0.0
9.4
1.7
1.8
0.4
4.9
1.8
Hugoton
Embayment
0.3
105.7
2.1 52.4
560.0 BCF
131.9 114.9 145.9 52.8
0.0
4.6
9.8
5.7
1.8
17.5
10.5 26.7
8.5
45.5
13.7
0.0
0.0
2.0
0.0 0.0 0.0
0.0
0.0
0.5
0.0
0.0
0.0
0.0
2.7
0.0
3.1
0.3
0.1
0.0
13.0
11.6
0.0 0.0 0.0
0.0
0.0
0.3
1.6
6.0
2.8
EUR = Current Cumulative + (Current Monthly*48)
6.0
0.0
1.7 7.4
0.0
0.0
0.0 0.4
0.0 0.8 0.0
0.0 0.1
0.3
1.1 1.8
0.0
2.5 0.7
0.0
10.0 1.2
0.0
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Future Strategies
Two Major Factors Effecting Future Exploration
Inter-dependence of Three Principal Variables
Product Price
Drilling Activity
New Reserves Discovered
Historical Trends of Kansas Oil & Gas Reserves
… The Past is the Key to the Future ...
Largest & Average, Oil & Gas Discoveries
Best & Average New Discovery Proven Reserves
Oil & Gas Reserve Replacement Rate
# of new producing leases
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Future Strategies - Interdependence of Three Principal Variables
Drilling Activity vs Oil Price
10,000
Years: 1949 - 1973
Years: 1974 - 1986
Years: 1987 - 1996
Linear (Years: 1987 - 1996)
Linear (Years: 1974 - 1986)
Linear (Years: 1949 - 1973)
Annual Drilling Activity
8,000
R2 = 0.9423
6,000
R2 = 0.5537
R2 = 0.3123
4,000
Future Price Perception
2,000
Drilling Activity not Price Dependent
(many large reserve fields to discovered)
1998
833 wells
0
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Oil Price (Real $/bbl)
$35.00
$40.00
$45.00
$50.00
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Future Strategies - Interdependence of Three Principal Variables
Oil Reserve Replacement vs Oil Price
140,000,000
Years: 1949 - 1973
Years: 1974 - 1986
100,000,000
80,000,000
60,000,000
Years: 1987 - 1996
Reserve Replacement
not Price Dependent
Annual Reserve Replacement (bbls)
120,000,000
Linear (Years: 1987 - 1996)
40,000,000
20,000,000
y = 1E+06x - 8E+06
R2 = 0.4136
0
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Oil Price (Real $/bbl)
$35.00
$40.00
$45.00
$50.00
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Future Strategies - Interdependence of Three Principal Variables
Oil & Gas Reserve Replacement vs Drilling Activity
(excludes HPBG Infill Drilling & Reserves)
Annual Reserve Replacement (NEB)
50,000,000
Years: 1987 - 1996
9 Counties in NW KS
9 Counties in SW KS
Linear (Years: 1987 - 1996)
Linear (9 Counties in NW KS)
40,000,000
y = 8722.9x + 7E+06
R2 = 0.7211
Reserve Replacement
not Activity or Price Dependent
(many large reserve fields to discovered)
30,000,000
20,000,000
Average Finding Cost
State: $9.59 / NEB
NW KS: $28.69 / NEB
SW KS: $3.99 / NEB
10,000,000
y = 8983.3x - 678255
R2 = 0.7742
0
0
500
1000
1500
2000
2500
Annual Drilling Activity
3000
3500
4000
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Future Strategies - Historical Trends of Kansas Oil & Gas Production
EUR Oil for New Discoveries
Largest and Typical Lease
100,000
‘87 to ‘96 Average
Largest Lease
1,296,483 bbls
EUR Oil (M bbls)
10,000
1,000
‘87 to ‘96 Average
Typical Lease
34,296 bbls
100
EUR Oil, Largest Lease
EUR Oil, Typical Lease
10
1915
1925
1935
1945
1955
1965
1975
1985
1995
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Future Strategies - Historical Trends of Kansas Oil & Gas Production
EUR Gas for New Discoveries
Largest and Typical Lease
100.0
EUR Gas, bcf
‘87 to ‘96 Average
Largest Lease
6,511,460 mcf
10.0
1.0
EUR Gas, Largest Lease
EUR Gas, Average Lease
‘87 to ‘96 Average
Typical Lease
471,112 mcf
0.1
1925
1935
1945
1955
1965
1975
1985
1995
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Future Strategies
Types of Exploration Strategies
Which Companies have the Lowest Finding Costs ?
Corporate Strategies
companies with discoveries > 500 mNEB EUR (over 10 years)
companies with lowest finding costs
Which Counties produce the greatest EUR per Foot Drilled ?
Geographical Strategies
counties ranked by EUR and Finding Cost
Which Formations yield the Largest Reserves ?
Reservoir Strategies
historical and recent percentage contribution
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Corporate Strategies - Success & Failure at Three Different Budgets
Corporate Strategies
Discoveries > 500 mNEB EUR, 1987 to 1996, No HPBG Infill
28,000
Major Oil Co
26,000
24,000
22,000
20,000
18,000
EUR (mNEB)
Major Oil Co
Total Footage
~ 1,000,000 Ft
Total Footage
~ 400,000 Ft
16,000
Large Independent
Major Oil Co
14,000
Small
Independent
12,000
10,000
Large
Independent
8,000
Total Footage
~ 1,700,000 Ft
Small Independent
6,000
4,000
Lots of Wells
Oil Co.
No Dryhole Oil Co
2,000
Dryhole Oil Co
0
0
200
400
600
800
1,000
1,200
1,400
1,600
Total Footage Drilled (mFt)
1,800
2,000
2,200
2,400
2,600
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Corporate Strategies - Large Exploration Budgets
Spatial Distribution of Exploration & Production
Company Total Footage Drilled ~ 1,700,00 Ft
1987 to 1996, No HPBG Infill
#
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Spatially Limited to NW KS
Very Low Success Rate
Narrowly Focused on LGKC Reservoir
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EUR 16,6 mmNEB
$3.69/NEB
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Major Oil Co
EUR 27.9 mmNEB
$2.41/NEB
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New Reserves
Est Drlg & Comp Cost
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Lots of Wells Oil Co
EUR 2.0 mmNEB
$27.77/NEB
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Corporate Strategies - Medium Exploration Budgets
Spatial Distribution of Exploration & Production
Company Total Footage Drilled ~ 1,000,00 Ft
1987 to 1996, No HPBG Infill
#
Spatially Unlimited
Very Low Success Rate
Poorly Focused on Reservoir
Major Oil Co
EUR 14.2 mmNEB
$2.51/NEB
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Spatially Limited
High Completion Rate
Focused on Depleted Reservoir
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New Reserves
Est Drlg & Comp Cost
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No Dryhole Oil Co
EUR 1.2 mmNEB
$28.94/NEB
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Dryhole Oil Co
EUR 1.36 mmNEB
$26.02/NEB
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Corporate Strategies - Small Exploration Budgets
Spatial Distribution of Exploration & Production
Company Total Footage Drilled ~ 400,000 Ft
1987 to 1996, No HPBG Infill
Company
New Reserves
Est Drlg & Comp Cost
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Small Independent
EUR 10.1 mmNEB
$1.58/NEB
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Spatially Limited
Focused on Single Reservoir
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Small Independent
EUR 2.5 mmNEB
$4.84/NEB
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“Arbuckle” Oil Co
EUR 0.6 mmNEB
$22.20/NEB
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Corporate Strategies - Companies with Lowest Finding Costs
Top 15 Companies Ranked by Finding Costs
Discoveries > 500 mNEB EUR, 1987 to 1996, No HPBG Infill
Reserves Discovered
Outside Hugoton Field
Major
Sm. Indpndnt
Major
Sm Indpndnt
Major
Sm Indpndnt
Major
V Sm Indpndnt
Sm Indpndnt
V Sm Indpndnt
Lrg Indpndnt
Lrg Indpndnt
V Sm Indpndnt
Sm Indpndnt
Sm Indpndnt
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
Cost Calculation
Depth Comp Dry
$/Ft
$/Ft
>4500 $45
$30
<4500 $40
$25
<2500 $35
$20
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Geographical Strategies
Kansas Counties
EUR NEB vs Footage Drilled
1987 to 1996, No HPBG Infill
35,000
Seward
30,000
Morton
EUR (mNEB)
25,000
Stevens
Stanton
20,000
Haskell
15,000
Finney
Meade
10,000
Grant
Barber
Comanche
Stafford
Ness
5,000
0
0
500
1,000
1,500
2,000
2,500
3,000
Total Footage Drilled (mFt)
3,500
4,000
4,500
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Geographical Strategies
Kansas Counties Finding Cost
(Drlg & Comp Cost / EUR NEB)
1987 to 1996, No HPBG Infill
WC & SC
Kansas
$17.92 average
15 .7 5
6.5 6
52 .9 0
9.7 8
18 .8 4
20 .8 1
39 .3 0
25 .3 4
14 8 .2 0
18 .8 4
26 .2 0
14 .3 4
4.9 1
25 .4 5
81 9 .1 3
9.2 0
13 .5 4
Hugoton
Embayment
$3.79 average
6.9 6
13 .6 3
24 .2 9
22 .5 1
6.2 1
4.3 0
33 .9 4
20 .7 1
6.6 0
19 .1 5
19 .3 2
13 .4 1
61 .7 4
73 .5 0
28 .3 5
25 .2 4
6.5 6
10 .1 1
15 .8 4
18 .4 5
5.1 2
10 .9 0
13 .5 9
10 .8 8
13 .9 2
16 .4 3
27 .0 1
35 .8 6
35 .3 6
9.3 1
3.7 7
3.4 5
5.2 2
15 .3 3
7.2 0
9.3 1
11 .5 2
22 .5 2
24 .1 5
31 0 .6 3
32 .2 7
44 .4 7 11 3 .3 8
55 3 .9 7
22 .1 9
31 .5 9
21 .1 3
2.5 1
97 .8 8
50 .7 4
18 .2 6
19 .3 4
12 .6 2
2.3 2
34 .4 0
30 .5 4
31 .4 2
20 .1 2
85 .0 3
27 .3 2
49 .7 2
30 .5 6
20 .8 7
52 .7 4
20 .6 3 37 .0 4 28 .1 9
25 .7 8
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Reservoir Strategies
State of Kansas
% of Cumulative Oil Production
by Formation
Years: 1987 to 1998
WBNS
SIMP 1.2%
VIOL 1.8%
2.7%
CHRK
6.1%
CHSE
0.4%
All Others
1.2%
MISS
33.1%
ARBK
8.1%
MARM
8.2%
LGKC
16.3%
MRRW
20.9%
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Reservoir Strategies
Cumulative Oil Production by Formation
Years: 1987 to 1996
Cum. Oil per Frmn.
45.0
40.0
Ave. Cum. Oil per Lease
40.0
20.0
20.0
15.0
15.0
10.0
10.0
5.0
5.0
-
-
La
ns
i
au
ns
W
ab
Si
m
ps
ee
he
ro
k
C
rb
uc
k
A
M
ar
m
Ci
ty
ng
-
Ka
n
sa
s
si
si
pp
M
is
ee
25.0
on
25.0
Vi
ol
a
30.0
le
30.0
at
on
35.0
ia
n
35.0
Ave. Cum. Oil, M bbls
50.0
45.0
M
or
ro
w
Cumulative Oil, MM bbls
50.0
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Reservoir Strategies
SHWN
LGKC 0.7%
WBNS
0.6%
CHRK
0.5%
VIOL
0.4%
State of Kansas
% of Cumulative Gas Production
by Formation
Years: 1987 to 1998
All Others
1.0%
1.0%
MARM
1.5%
CGRV
2.8%
MISS
9.6%
MRRW
17.4%
CHSE
64.5%
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Reservoir Strategies
Cumulative Gas Production by Formation
Years: 1987 to 1996
600.0
600.0
Cum. Gas per Frmn.
500.0
400.0
400.0
300.0
300.0
200.0
200.0
100.0
100.0
ns
i
Vi
ol
a
ra
ra
io
b
N
W
ab
au
ns
ee
an
to
k
A
ne
e
Sh
aw
Ci
ty
ng
-
Ka
n
sa
s
M
ar
m
La
si
si
pp
M
is
at
on
ia
n
M
or
ro
w
Cum. Gas, MM mcf
Ave. Cum. Gas per Lease
Ave. Cum. Gas, M mcf
500.0
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Summary
Formation Strategies
Best Oil & Gas Producing Formations*
Formation
Total Oil Disc.
Total Gas Disc. % of Discoveries w/ % of Discoveries w
EUR > 83 mbo
EUR > 500 mmcf
Morrow
Missisippian
Lansing-Kansas City
Marmaton
Arbuckle
Cherokee
Viola
Simpson
Wabaunsee
Shawnee
Atokan
Niobrara
578
1240
660
347
368
304
122
61
49
0
0
0
656
1091
232
337
0
0
52
0
30
76
53
35
* 1987 to 1996
16%
7%
8%
8%
5%
5%
6%
8%
6%
0%
0%
0%
32%
7%
2%
3%
0%
0%
4%
0%
10%
5%
6%
6%
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Summary
Geographical Strategies
Excellent Opportunities in almost All Counties
56 counties had at least 1 oil discovery with Lease EUR > 83,000 bbls.
30 counties had at least 1 gas discovery with Lease EUR > 500,000 mcf.
County
FINNEY
HASKELL
MORTON
SEWARD
STEVENS
NESS
KEARNY
STANTON
WALLACE
STAFFORD
# of Oil Disc.*
43
34
25
20
18
18
17
17
13
12
* 1987 to 1996, > 83 mbo or 500 mmcf
County
SEWARD
MORTON
STEVENS
MEADE
STANTON
HASKELL
BARBER
COMANCHE
RENO
CLARK
# of Gas Disc.*
84
81
64
38
34
30
24
14
5
5
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Summary
Corporate Strategies
Future Exploration Programs….
Efficiently Budgeted, Spatially Limited, with Proper Reservoir Focus
…will have the Lowest Finding Costs*
Operators Drilling > 50,000 ft/yr. (10 - 15 wells/yr.)
Average Finding Cost $12.79/bbl
Range($/bbl): $2.41 to $28.94
Need to focus on Southwest Kansas
Large Operators active outside of SW Kansas
ALL have Finding Cost > $10/bbl (most above $20/bbl)
Operators Drilling < 50,000 ft/yr.
Average Finding Cost: $9.04/bbl
Range($/bbl): $1.51 to $24.06
Operators Drilling < 20,000 ft/yr.
Average Finding Cost: $6.22/bbl
Range($/bbl): $2.34 to $11.04
* unless you happen to own leases in the Hugoton Gas Field
Kansas Oil and Gas Exploration -
10 Year History & Future Strategies
Final Slide
Acknowledgements
Kansas Geological Survey
for support of this research
Kansas Corporation Commission
furnishing well completion data
Kansas Department of Revenue
furnishing oil and gas production data