HomeMy WebLinkAboutHEARTHFIRE (HOFFMAN) PUD - PRELIMINARY (REVISED) - 31-95A - CORRESPONDENCE - PRIVATE ENTITIES (8)December 1, 1995
Mr. Jim Sell
Jim Sell Design, Inc.
117 E. Mountain Avenue
Fort Collins, Colorado 80524
WHITING
r
Re: Hoffman P.U.D. Planning Items
Submersible Pump Economic Analysis for Well #30-2
Dear Mr. Sell:
This letter is written to follow-up on item # 6 in the minutes of our October 27th meeting. The
comparison of producing the subject well bysubmersible pumping to the current beam pump
installation is as follows:
Item
Subm.Pumn
Beam Pump
Difference
Cost of equipment & installation
$66,712
$ 0
$66,712
Annual electrical cost
6,732
2,906
3,826
Annual repair & maintenance
13,632
4,704
8,928
Annual value of lost production
18,072
0
18,072
This analysis shows that it is not economically feasible for Whiting to install a submersible pump.
As you can see, it would cost about $67,000 to install a submersible pump. The submersible pump
would increase well operating cost by almost $13,000 per year and reduce production revenue by
about $18,000 per year. The loss of production of an estimated 3.75 Bbls of oil per day would result
from the submersible pump not doing as complete a job of removing all the available fluid from the
well as a beam pump.
Very truly yours,
Richard E. Fromm
Operations Mgr.- West
attachments -
cc: Steve Olt- City of Fort Collins Planning Dept.
Tricia Beaver- Colorado Oil & Gas Conservation Comm.
ref:H0FPUD5.WPD
WHITING PETROLEUM CORPORATION
MILE HIGH CENTER, 1700 BROADWAY, SUITE 2300, DENVER, COLORADO 80290.2301 (303) 837-1881 FAX (303) 881-4023
4804 REPUBLIC TOWERS II, 325 N. ST. PAUL ST., DALLAS, TX 75201 (214) 741-1650 FAX (214) 220,3940
An IES INDUSTRIES Company