Question-and-Answer Session
Operator
Thank you very much. (Operator Instructions) And we will hold one moment to compile our list of prospective questions.
And we'll take our first question from the line of Dan Rice with BlackRock. Please proceed.
Clayton Williams
Hey, Dan.
Dan Rice - BlackRock, Inc.
Hello, Mel and Clayton. On the economics of the Austin Chalk refracs, can you give us a feel for what you're seeing? How much they cost? I know you've got a lot of wells back in the early '80s that are sitting there. How many opportunities do you think you have, etcetera?
Clayton Williams
As we go forward, we expect that we maybe have about 100 wells. We don't expect all of them to be prospective. We think many are. As we go forward, we'll learn more. This is our second water frac. We've gotten the cost down through competition from $300,000 a water frac to $250,000. The payout is about two and a half months.
We're not able yet to tell what reserves it would add. But in many cases, it's increased the production in multiples 5 to 10 times. Very economic. And hopefully, if it works perfect, as it never does, we might have all 100 wells. Most likely, it will somewhere in between, but we are proceeding to frac those. They will probably be over a year and a half to two years, before we've completed the water fracs. We're very happy with it.
Dan Rice - BlackRock, Inc.
And what sort of production increase are you seeing so far on a per well basis?
Clayton Williams
Well, they are variable, but maybe from 10 barrels to 100 barrels.
Mel Riggs
Yeah. One thing I'd point out, Dan, is they perform. The decline curve is very similar to the natural decline curve of the well. You can recover probably, what, half the reserves.
Clayton Williams
Maybe even faster.
Mel Riggs
Maybe faster. So you're going to recover most of the reserves or the two-thirds of the reserves probably in the first year or so. So it's a quick cash flow impact. And at these product prices, obviously, that's a great opportunity.
Clayton Williams
Mel, I would add too that we have two rigs doing infield drilling. We are now drilling on what would be an equivalent of 40 acres, 160 acres going four or five times that. These wells so far appear successful. They are probably a little less than a one-year payout.
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