Completion cost

Casing

Modern wells have several sets of casing (steel pipe) cemented into the ground. A typical well will have conductor, surface, intermediate, production casing and tubing totaling tens of thousands of feet for a single well bore. For a horizontal well casing, pipe and tubing cost can quickly exceed $750,000.

Well stimulation

With modern horizontal wells, well stimulation is one of the biggest cost in the entire project. The most common stimulation is a technique called Hydraulic Fracturing. Its a process where fluid and sand are forced downhole at high pressure to open up the producing formation. It large horizontal wells this process takes an enormous amount of equipment and personnel to complete. Costs for modern fracturing techniques can quickly exceed $3,000,000 depending on the lateral length.

Surface Equipment

Producing wells take a large about of surface equipment to operate. Holding tanks, pumping units, metering stations, gas compressors, separators, pipelines and dehydrators are some of the heavy equipment needed to establish and maintain a producing well. The footprint for surface equipment on a typical well encompasses about an acre. Surface equipment for a single well can easily cost $750,000 or more.     

Pipeline cost

Gas wells and sometimes oil wells need to be connected to a pipeline network in order to get the product to market. For most wells, nearness to gas pipelines are one of the most important considerations.  In addition to the the physical pipe and dirt work needed to construct the pipeline, the easements that must be attained from every property owner in which the line will cross are also a major expense. This process for the initial well on a drilling site can take several months to complete. These cost are directly related to the length of pipeline that is needed.  In some cases pipeline connecting may only cost $75,000 but others it may exceed $1,000,000.