Conventional Vertical Well Services
Opportunity An increase from $40 oil to $55 oil results in a 35% increase in the U.S. population of “Economic” oil wells Source: DrillingInfo, Key Energy Services. Note: ‘Economic’ defined as an oil well in which the payback
associated with the cost of a well service “job” is approximately one year based on existing production levels. Assumptions for well service economics are as follows: Monthly well opex of $2,000, 20% royalty, $5/bbl transport charge,
total job cost of $20,000. Well count reflects only active, producing vertical oil wells.