Economics : Rates of Return/ IRR

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Niobrara 1.5-mile Average Type Curve and Economics Standard Completions Oil Type Curve and Operated Well Production(1) As of November 7, 2016 125 operated Niobrara wells with 30 days of production history; average lateral MBbl length of 6,001 Lateral Length 1.5 mile 120 Total Well Costs 3.96 MM Cum. Average Well Average 30-Day IPs of 719 Boe/d(1) Outperformance EUR (MBoe)(2) 575 (20 Months): 8% 106 Boe/d per 1,000 of lateral % Liquids 69% Average 180-day cumulative production of 95 MBoe(1) 100 LOE / Month per Well 9,925 Oil Mix: 3-stream 2-stream IRR / NPV (3) 50% / 2,916 30-day 62% 69% 80 180-day 56% 64% Life of Well 43% 51% 60 Type curve implies short payback period of 25 months at 12/30/16 strip pricing 40 IRR Sensitivity(3) 100% Average Oil 80% 20 60% 84% Oil Type Curve 40% 59% 37% 20% 19% 0 0% 0 5 150 10 300 15 450 20 600 40 50 60 70 Months NYMEX WTI Note: Production data normalized for a 6,800 lateral and operational downtime. Company data as of 11/7/16. (1) Production data normalized to 1.5 mile, 6,800 feet, equivalents and adjusted for operational downtime. Reflects wellhead data. (2) Average type curve presented per Management analysis. Average type curve EUR reflects 3-stream economic EUR at 12/30/16 strip pricing. (3) Gas held flat at 3.08/MMbtu (5-year average HHub as of 12/30/16) and subject to a 1.1x BTU adjustment, a (20%) POP differential, and a (0.16)/Mcf basin differential; NGLs assumed at 30% of NYMEX and subject to (20%) POP differential; Oil subject to (7) differential at all price levels; Assumed 100% WI and 80% NRI; Assumed 10% tax rate (Severance and Ad- 14 Valorem); NPV values discounted at 10%. IRR / NPV based on 5-year average NYMEX and HHub strip as of 12/30/16.
Extraction Oil and Gas
February 2017

SUSSEX SANDSTONE HIGHLY ECONOMIC OIL PLAY Moving to development Dominant position in the play Teapot 200 undrilled locations Parkman E, A, B/C & Deep Assumes 1,320' spacing Overpressured high deliverability Surrey Targeted development Sussex EUR: 825 1,350 mboe ROR: 50 70% (1) Niobrara 2017 focused drilling program Production Mix Turner Frontier 35% Mowry (2) Oil breakeven price 53% <40 12% Oil NGL Natual Gas (1) Assumes 3 gas and 60 oil prices flat (2) PV10 positive breakeven price assuming 3 gas price INVESTOR RELATIONS UPDATE - DECEMBER 2016 20
Chesapeake Energy Corp
December 2016

Niobrara Formation Type Curve Economics Type Curve Core/Tier 1 Total Well Cost 2.2 MM Gross 289 Mboe EUR Oil Only 217 Mbo Net 243 Mboe F&D Cost 9.05 / Boe IRR 146% 75 Oil NPV 3.2 MM IRR 103% IRR 65 Oil NPV 2.3 MM & IRR 46% NPV (2) 55 Oil NPV 1.4 MM IRR 21% 45 Oil NPV 0.6 MM NYMEX NPV10 Breakeven 39.25 (1) Economics based on NYMEX prices and include Daily Production, BOPD Cum Production, MBO 2/Bbl deduct for oil, 3.00/Mcf NYMEX gas, NGL pricing 19% of NYMEX oil price. (2) Total well cost includes 315K for allocated infrastructure and artificial lift. 20 CRZO
Carrizo Oil & Gas Inc.
February 2017

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