PETE 3025 Chapter : Petroleum Property Evaluation Manual
Document Summary
Evaluations are necessary for all normal expenditures, including: development wells, equipment installations, lease purchases, choice of secondary recovery processes, and choice of well spacing. We will look at a situation for evaluating an existing well. First we will use production decline curves to predict future production. Second we will predict profits or losses due to taxes with an excel spreadsheet. Evaluating oil properties involves two major parts: evaluate the oil and gas that will be produced in the coming years using material balance computer programs or production decline curves. In our example we will be using production decline curves: evaluate the present net worth of the oil and gas produced. Including deduction of operating expenses, local, state, and federal taxes. Book profit declarations or financial accounting statements are used in bigger companies for credit ranking. Then we will look at our sample problem. A description of how arps type production decline curves work: the arps type production decline curves.
