Enerplus Resources Fund (ERF) released further details on its assumptions for wells drilled into the Bakken Shale. The company is currently in the midst of an active drilling program here.
Enerplus Resources Fund estimates that the company has 5 to 6 million barrels of oil in place per section with an approximate 15% recovery factor. The company will drill 2 Bakken Shale wells per section, composed of either two long lateral wells per 1,280 acres or two short lateral wells per 640 acres.
Enerplus Resources Fund assumes that the company will earn between a 40% and 100% return on wells drilled into the Bakken Shale. The company is a using a first year decline rate of 80%.