Hi Pat, sorry to hear you are having a similar problem. Let me make sure we are on the same page. The well we are discussing is one you are Non Consent in? If that is the case a 7 million dollar well is a $10.5 million dollar well after the penalty of 50% of actual cost of drilling and completing.
As for the forensic CPA cost? They are going to have to go where the records are to examine them which I presume is going to mean lodging, food, expenses, rental car, travel expenses and their hourly fee.
I’m fairly certain that I will recover most or all of the expense from throwing out charges that are not sufficiently documented.
Pat, I also already know that on my particular well they are charging me the 50% risk penalty (of drilling and completion cost) on surface equipment, tanks and pipeline! If necessary I will challenge them to show how they could lose the tanks and pipeline? Losing a wellbore is possible but losing a pipeline? Really? There are many wells that are producing not on a pipeline, a well is complete without a pipeline.
I actually believe that my operator applied the 50% risk penalty twice. I know the drilling went exactly as planned. My $10 million well somehow ballooned into a $14.5 million… and then they applied a 50% risk penalty to that and also to all surface equipment.