Why Bakken breakeven prices vary

By The Bakken Magazine Staff | October 20, 2015

Calculating breakeven prices on Bakken and Three Forks wells can be difficult, but Justin Kringstad, director of the North Dakota Pipeline Authority, has made an attempt. To perform the analysis, he used past well performance across the oil production region to estimate well economics at various production levels. He also used key economic assumptions that include: $6 to $8 million wellhead costs, no tax incentives, 30-day average production rate and an internal rate of return of 20 percent to drill.