Nine Point Energy high operating costs

I have minerals that were developed by Nine Point/Triangle over the last 5-10 yrs. Minerals are spread across 7 DSUs in McKenzie and Williams counties. The operating costs/LOE for these wells are such that I have not broken even over the last 3 years. I’m exposed to several other operators in these counties and haven’t had anywhere near the extremely low profitability that I’ve experienced with Nine Point.

They’re going through Ch11 now (makes sense) and it sounds like they’re coming out with the same mgmt team. This is the same mgmt team that took Triangle into Ch11 a few years ago and came out as Nine Point.

Is anyone else having similar experiences with Nine Point or is it just my bad luck?

I have no experience as a WI owner with Nine Point.

You are not breaking even on a monthly basis, or you have not yet recouped your D&C costs? The former seems unlikely, the latter is just how it goes, and probably is more a function of the CAPEX and volumes than the OPEX. But you have the JIBs so you probably know exactly what your LOE/BOE etc is.

Drilling out in 100W-103W is not the greatest place to be. Nine Points wells should make money overall at $70 WTI but they aren’t paying back in 3 years. (Graph below is normalized average of wells online in the last 4 years).


In general, I would not recommend participating in wells in Western ND, but that is your business. If the rock is iffy, you definitely want to sign a lease. IMO

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