One rig supports one whole-crew day pool. More paid helpers do not create another saleable rig day. This fictional Texas well contractor’s January 2027–December 2029 forecast includes its paid roster and economic owner pay, while retaining a first-year operating loss and unrecovered initial investment.
Check crew-day contribution against the complete rig investment and paid roster. A reserve and later positive EBITDA do not prove equipment payback.
Which unit can the rig sell?
The monthly calendar contains 20; mature base workload sells 11. Domestic wells, farm wells, replacements, deepening and rehabilitation divide those days once. A crew day is not one well completion or each employee’s shift counted separately.
The rig, crew and support roles stay fixed. Paying another helper or allocating the rig across several services does not create another drilling pool. Territory, conditions and job duration still require actual site evidence.
Which startup commitments belong together?
The equipment allowances total $540,000.00. Setup and opening goods bring startup uses to the table total. The water truck and service vehicle support this rig operation; neither represents an additional drilling rig.
These are fictional purchase allowances rather than delivered and commissioned quotes. Inspect condition, compatibility, transport, site preparation and excluded refundable deposits before committing. Asset investment and the cash reserve left after it answer different questions.
| Commitment | Allowance | Treatment |
|---|---|---|
| Used truck-mounted rotary rig | $275,000.00 | Asset purchase allowance |
| Support water truck | $85,000.00 | Asset purchase allowance |
| Service truck and trailer | $60,000.00 | Asset purchase allowance |
| Compressor and mud equipment | $60,000.00 | Asset purchase allowance |
| Initial rods and tooling | $40,000.00 | Asset purchase allowance |
| Test pumps and shop equipment | $20,000.00 | Asset purchase allowance |
| One-time setup | $17,650.00 | Paid at launch |
| Opening goods | $6,000.00 | Stock, not extra rig capacity |
| Total startup uses | $563,650.00 | Refundable deposit excluded |
Can sold days cover compensated operations?
April revenue is $54,890.00 and EBITDA is $423.46. That mature-month surplus is thin after crew, owner operations, office support and overhead. Economic owner pay is $5,333.33, with no employer allowance on that owner line; employee allowances remain separate.
Operating-year 2027 EBITDA is -$28,950.28 and net income is -$121,235.99. Depreciation of the asset base makes the accounting result lower. EBITDA excludes depreciation, interest and tax and cannot demonstrate that the rig has paid back.
How does working capital use the reserve?
Proposed equity is $750,000.00, leaving $186,350.00 after startup uses. Collection is modeled at 12 days, with 19 blended payment days. Only goods enter physical stock.
Minimum cash is $144,587.95. Equity is uncommitted and initial investment remains unrecovered within the horizon. A modeled reserve is not proof of viable jobs, inspected assets or secured finance.
What must be known before buying the rig?
Obtain inspected equipment quotes and whole-crew-day logs for scoped paid jobs. Separate drilling, movement, setup, testing and interruptions. Verify actual territory requirements and crew capability before accepting technical work.
Relate each proposed fee to the whole crew days and goods consumed. Replace assumed collection/payment timing with real terms. A job lasting several days cannot be counted as several independent full-fee well completions.
Make the next decision with your own evidence
Collect inspected equipment quotes, paid crew-day logs and committed funding before accepting the single-rig launch budget.
Explore published business plan examples ↗Cedar Aquifer is a fictional prelaunch scenario prepared with AI assistance. Inputs are illustrative; forecast results come from the matching saved financial model. Funding is proposed. The diagrams explain the case and do not depict actual premises, established demand or promised earnings. Replace the assumptions with evidence before committing.
Read our methodology