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