Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Neal Dingmann with Dahlman Rose. Please proceed with your question.
Neal Dingmann - Dahlman Rose
Good morning, guys. Excellent quarter.
Tim Rochford
Thank you, Neal.
Neal Dingmann - Dahlman Rose
Say, Phil or Tim, could you just, I guess, in this environment kind of walk through again the economics, especially now if you're going to let two of the contract rigs go? Just would like to walk through again the economics of the firm and as you've seen both in sort of that sweet spot as well as in the other areas just wondering how similar it is on the 10 versus when it was on the 40s, kind of what you are seeing as far as economics, IP's cost, et cetera?
Tim Rochford
Phil, why don't you address the latter and then I'll finish it up with a comment or two myself?
Phil Terry
Certainly. We continue to use $647,000 for our completed well cost, Neal. Those numbers reflect the casing and tubing prices at their highest point. We are seeing some relief by the way in the form of decreasing casing and tubing prices. But for the sake of budgeting and going forward, we use $647,000 per well.
Those costs will be slightly lower for our two company-owned rigs just because of the fact that we are doing with company-owned rigs. We could probably reduce that $647,000 by about $23,000 for each well. And as a result of that, we will see those prices remain at or near current levels.
But hopefully, we'll see the casing prices come down as we move forward. And we're also going to negotiate with some of our providers of goods and services to really fine tune our cost structure.
The average well continues to be, on a overall acreage basis, about 150 barrels per day. We see that number higher in the area where we have the Grayburg. And again, that number is generally north of 200 barrels per day for the thicker Grayburg fairway.
The average well that we always talked about being 40,000 net BOE, well, that is still a good number. However, we are seeing that our numbers for the new 20s and new 10s may be slightly higher than that. That 40,000 was across the board and included all of the newly drilled wells, on the original 20s.
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