Apache Corporation (APA) recently disclosed the economics of drilling and completing oil and gas wells into various plays in the Permian Basin.
Apache is active in the Midland Basin portion of the Permian and is drilling vertically into several oil and gas formations in 2012. These include the Wolfcamp, Wolfberry, Wolfwood, Strawn and Fusselman formations.
Apache estimates that these vertical wells will cost an average of $2 million to drill and complete and have an estimated ultimate recovery (EUR) of 144,000 barrels of oil equivalent (BOE).
Apache estimates that 82% of the production from these vertical wells will be crude oil or other liquid hydrocarbons and yield an average return of 27%. The company estimates that it has 13,341 vertical drilling locations in the Midland Basin into these formations.