Part 4/7:
Electricity: Running the extensive network of pumping units, which alone costs about $1,500 per month.
Vehicle Expenses: Costs related to trucks and field vehicles.
Saltwater Disposal and Chemicals: Expenses involved in handling produced water and injecting chemicals such as corrosion inhibitors to maintain equipment integrity.
Maintenance & Repairs: Routine replacements of valves, fittings, and pipework, as well as emergency repairs like workovers when wells break or encounter issues requiring rig work.
On a monthly basis, these combined operational expenses summed up to roughly $5,800 for this well.
Calculating Net Operating Income (NOI)
Subtracting the expenses from revenue yields the net operating income:
$30,283 (revenue)