In the following table, you will find typical daily production ranges for oil and gas companies for both onshore and offshore production wells.
| Oil (barrels per day) | Gas (million m3 per day) | |||
|---|---|---|---|---|
| Quality | Onshore | Offshore | Onshore | Offshore |
| Fair | 300 – 1000 | 2000 – 5000 | 0.1 – 0.2 | 0.3 – 0.7 |
| Good | 1000 – 3000 | 5000 – 8000 | 0.2 – 0.5 | 0.3 – 1.0 |
This quote is taken from The Mining Valuation Handbook by Victor Rudenno, which is a valuable source of information on oil and gas flow rates and other aspects of investing in mining and energy stocks:
“An important aspect of oil production is the decline in oil production over time due to falling pressure and increasing water production. Remedial action may be taken to mitigate the decline rate. However, production will decline over the life of the field at a geometric rate. Common practice in investment analysis is to use a 15 to 20% per annum decline rate when specific details are not known and assume that some 20 to 30% of the field’s reserves are produced in the first 12 to 18 months of production.”
If you’re looking for more detailed information about investing in these sectors, consider purchasing a copy of this book for future reference.
