MT Heath Shale Play; "Last Wells Are Coming In At 15 To 20 Barrels A Day" - At $4-6 Million Per Well
The pessimists are right for now: The Heath oil play cutting a swath across Central Montana is no match for the Bakken. In fact, a handful of companies drilling in this shale formation in Central Montana have all pulled out.
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Both events have political significance. Some Republicans legislators in Helena are citing the stalled projects as reasons why fellow lawmakers should curb permanent spending increases based on oil tax revenues.
The last wells are coming in at 15 or 20 barrels a day. At $4 million to $6 million a well, that doesnt cost out, said independent oil man Tom Hauptman of Billings.
Production of shale wells decline rapidly after a year or two. So the Heath wells would have to produce 30 times what they are now to be economical, Hauptman said. Two years ago, the petroleum industry veteran was touting the Heath as a potential mini-Bakken.
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http://billingsgazette.com/news/state-and-regional/montana/shale-formation-in-montana-frustrates-oil-drillers/article_14e20e2f-fa60-5eb3-9b86-e7d8d3cb8870.html