Dear Trusted WSO Users,
Take a medium-sized classic (non shale) upstream, Onshore oil project that has began commercial production.
Looking back retrospectively, of the total CAPEX spent, what % (on average) will have been expended on exploration only (not counting later CAPEX on development, i.e. subsequent to striking oil that becomes P1 under reserve classification)?
Any informed advice would be highly appreciated.
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Be more specific with location
Russia - Western Siberia. If you don't know (would not blame anyone for that), for any location you believe is the best comp. If you know of no comps, then for the location that you do know. Anything would be of value, as I have no data points at all at the moment.
It really depends on the formation/well depth. Drillers usually charge a day rate. During the boom years, day rate can go up to $35,000 to $40,000 for an AC Triple walking rig. Nowadays, if you are drilling something in the 3,000 to 4000 meters range (total depth), it will only take an AC Triple rig 6-8 days for a well.
I'm not sure what you are exactly asking. What % of capital spent would be directly related to the addition of proved reserves?
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