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All-in F&D costs dropped dramatically in 2007 to $2.52/Mcfe
- Article from:
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Oil & Gas Investor
- Article date:
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May 1, 2008
- Author:
- Stell, Jeannie
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Copyright informationCopyright Hart Energy Publishing, LP May 2008. Provided by ProQuest LLC. (Hide copyright information)
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All-in oil and gas finding and development (F&D) costs declined to $2.52 per thousand cubic feet equivalent (Mcfe) in 2007, down from $3.19 in 2006, representing a 20% decline, according to Calyon Securities (USA) Inc. analyst Jeb Armstrong.
His analysis was of results among a 13-company study group. Positive reserve revisions by E&Ps are credited as the major factor in the revision. Excluding revisions, all-in F&D costs declined $0.05 to $3 per Mcfe.
"While likely to head higher in 2008, relatively flat rig rates and rising oil and gas prices should keep an increase under control and result in growing free cash flow," he says.
Many companies may end the year with substantial ...