SandRidge Energy (SD) disclosed the economics of the company’s development of the Central Basin Platform in the Permian Basin. The company is targeting the San Andreas and Clear Fork formations on its acreage.
SandRidge Energy said that the average well costs $760,000 to drill and complete and has an estimated ultimate recovery of 83,000 barrels of oil equivalent (BOE). These resources are approximately 79% crude oil.
SandRidge Energy said that wells here produce an average of 65 BOE per day during the first thirty days of production. The company said that the rate of return on wells here are 97% using strip prices as of March 2011.
SandRidge Energy reported that the finding and development costs for wells in the Central Basin Platform are approximately $12.25 per BOE.