Description
PET 471 – Reservoir
Petrophysical
Description
Geologic Description Fluid Description
Reservoir Description
and Evaluation
oil or gas-in-place
reserves
PET 472 – Reservoir Management
RESERVOIR
MANAGEMENT
Well/Field Performance
Optimization
Design
Well Planning Project Economics
Production Design
INPUT OUTPUT
Geologic Description
Trapping mechanism,
Seismic depositional environment,
outcrop, sample, & rock properties
core analysis
Petrophysical Description Logs - f, Sw, h, lithology
Cores - f, Sw, k, lithology
Well log Special core - Pc, kr
core PTT - k, Skin, Pr
pressure testing
Fluid Description Reservoir fluid type,
Fluid properties, Bo,
PVT Fluid sample or
Bg, m,...
API, gg, Tf, GOR
Well Planning
WOB, ROP, mud type, Usable wellbore
casing design,
bit design
Production Design Pressure losses in pipes
Production data, & completion,
completion type decline curve analysis
facility data
Project Economics Cashflow and NPV,
Investment costs, risk and uncertainty,
expenses, viability
target parameters
Authority For Expenditure
Page 1 – Location information, Description of project, Summary economics, signatures
Working interest/ net revenue interest
Page 2 – Justification Summary of proposed project
Brief history of well/field
Expected results
Risk imposed on project,
anticipated problems
Page 3 – Workover Procedure (or drilling plan or waterflood pilot…)
Page 4 – Itemized costs to perform work Investment – tangible vs intangible
Operating Expenses
Page 5 – Wellbore diagram
Page 6 – well/field history
Page 7 – production forecast Gross and net production by stream
Basis for production forecast
Page 8 – Economic forecast Revenue
Operating expenses
BFIT/AFIT cashflows
Taxes
NPV discounted at x%
Summary economics – DCFROI, Discount rate, payout, cost per equiv bbl, …
Page 9 - Decision and risk analysis
Supporting documents Maps
Decline curve with projection
Well log
Other
Authority For Expenditure
Page 1 – Location information, Description of project, Summary economics, signatures
Working interest/ net revenue interest
Page 2 – Justification Summary of proposed project
Brief history of well/field
Expected results
Risk imposed on project,
anticipated problems
Page 3 – Workover Procedure (or drilling plan or waterflood pilot…)
Page 4 – Itemized costs to perform work Investment – tangible vs intangible
Operating Expenses
Page 5 – Wellbore diagram
Page 6 – well/field history
Page 7 – production forecast Gross and net production by stream
Basis for production forecast
Page 8 – Economic forecast Revenue
Operating expenses
BFIT/AFIT cashflows
Taxes
NPV discounted at x%
Summary economics – DCFROI, Discount rate, payout, cost per equiv bbl, …
Page 9 - Decision and risk analysis
Supporting documents Maps
Decline curve with projection
Well log
Other
Example: Project Evaluation –Horizontal well case
103
CUMULATIVE PRODUCTION
L= 3000
PRODUCTION RATE
DISCOUNTED REVENUE
NET PRESENT VALUE, $
PERFORMANCE
L= 500
PROGRAM
102
WELL
L= 0
101
100 L= 0
101 102 103 104 0 1000 2000 3000
TIME, DAYS TIME, YEARS
HORIZONTAL LENGTH, L
TREATMENT VOLUME
STIMULATION
WELL COST, $
PROGRAM
DESIGN
NET PROFIT,NPV $
0 1000 2000 3000 0 1000 2000 3000
HORIZONTAL LENGTH, L HORIZONTAL LENGTH, L
0 1000 2000 3000
HORIZONTAL LENGTH, L
