Inside Look: A glance at the oil and gas industry by the numbers
For those of you who like numbers, I’ve done an informal, not scientific survey of our clients to find out some averages of their operations. There are a wide variety of ranges here, as obviously terrain, depths, and other factors play a large hand in prices, but I think you’ll find the results interesting.
Grouped by state, I’ve averaged the number of wells, number of investors, cost of drilling and/or completion, if the wells are vertical or horizontal, what the average success rate is of the wells drilled, how long it takes to recoup drilling and completion costs and begin making a profit and how many wells, if any, they’ve personally invested in and why.
Enjoy!
Kansas
Average No. of Wells: 113
Average No. of Investors: 21
Average Cost for Drilling and/or Completion: $125,000-450,000
Wells primarily vertical or horizontal or both: Vertical
Company’s average success rate for wells drilled: 63.67%
How long it takes on average to make a profit on a well: 10 months
Why or why haven’t you personally invested in wells in your area: Because it was a good deal
Texas
Average No. of Wells: 24
Average No. of Investors: 15
Average Cost for Drilling and/or Completion: $250,000-2 million
Wells primarily vertical or horizontal or both: Both
Company’s average success rate for wells drilled: 73%
How long it takes on average to make a profit on a well: 18 months
Why or why haven’t you personally invested in wells in your area: We’ve invested in all of ours because it’s a great investment; Quite simply to return a profit and make a living; None because I haven’t had the money or opportunity to
Louisiana
Average No. of Wells: 15
Average No. of Investors: 19
Average Cost for Drilling and/or Completion: $1.5 – 6 million
Wells primarily vertical or horizontal or both: both
Company’s average success rate for wells drilled: 10%
How long it takes on average to make a profit on a well: 3 years
Why or why haven’t you personally invested in wells in your area: Zero, but I might take the plunge when the risk/reward is right for me
Ohio
Average No. of Wells: 154
Average No. of Investors: 7
Average Cost for Drilling and/or Completion: $50,000-450,000
Wells primarily vertical or horizontal or both: Both, mostly vertical
Company’s average success rate for wells drilled: 81%
How long it takes on average to make a profit on a well: 45 months
Why or why haven’t you personally invested in wells in your area: For tax advantages and the return on investment; to support our clients; none because I prefer more liquid investments
New York
Average No. of Wells: 150
Average No. of Investors: 8
Average Cost for Drilling and/or Completion: $325,000
Wells primarily vertical or horizontal or both: Vertical
Company’s average success rate for wells drilled: N/A
How long it takes on average to make a profit on a well: N/A
Why or why haven’t you personally invested in wells in your area: N/A
Pennsylvania
Average No. of Wells: 103
Average No. of Investors: 18
Average Cost for Drilling and/or Completion: $90,000-325,000
Wells primarily vertical or horizontal or both: Both
Company’s average success rate for wells drilled: 95.5%
How long it takes on average to make a profit on a well: 3.5 years
Why or why haven’t you personally invested in wells in your area: N/A
West Virginia
Average No. of Wells: 151
Average No. of Investors: 7
Average Cost for Drilling and/or Completion: $200,000-3 million
Wells primarily vertical or horizontal or both: Both
Company’s average success rate for wells drilled: 92.5%
How long it takes on average to make a profit on a well: 2.5 years
Why or why haven’t you personally invested in wells in your area: Because of the return on investment, None because I’m only an employee
Oklahoma
Average No. of Wells: 35
Average No. of Investors: 3
Average Cost for Drilling and/or Completion: $200,000-350,000
Wells primarily vertical or horizontal or both: Vertical
Company’s average success rate for wells drilled: 66%
How long it takes on average to make a profit on a well: 2 years
Why or why haven’t you personally invested in wells in your area: N/A
Wyoming
Average No. of Wells: 29
Average No. of Investors: 15
Average Cost for Drilling and/or Completion: $600,000-1.1 million
Wells primarily vertical or horizontal or both: vertical
Company’s average success rate for wells drilled: N/A
How long it takes on average to make a profit on a well: 1 year
Why or why haven’t you personally invested in wells in your area: None because the price tag is too high
New Mexico
Average No. of Wells: 15
Average No. of Investors: 35
Average Cost for Drilling and/or Completion: $250,000-500,000
Wells primarily vertical or horizontal or both: Vertical
Company’s average success rate for wells drilled: 50%
How long it takes on average to make a profit on a well: 1.5 years
Why or why haven’t you personally invested in wells in your area: N/A
Illinois
Average No. of Wells: 181
Average No. of Investors: 3
Average Cost for Drilling and/or Completion: $250,000
Wells primarily vertical or horizontal or both: Vertical
Company’s average success rate for wells drilled: N/A
How long it takes on average to make a profit on a well: N/A
Why or why haven’t you personally invested in wells in your area: N/A
