Economics Of Petroleum Exploration Development And Property Evaluation

This text covers all of the subjects necessary to evaluate oil and gas properties. Subjects include decline curve evaluation using both Arps' equations and more recent equations, and net cash flow calculations in a royalty/tax system and a production sharing contract. Time value of money and managerial indicators are also discussed. Resource and reserve definitions under PRMS and SEC systems including a compilation of the 1978 and 2008 SEC definitions. Oil and gas pricing is discussed including an example on calculating the revenue from a POP contract. Examples of AFE's for horizontal and vertical wells are provided along with lease operating statements. Methods of handling uncertainty are covered including sensitivity analysis, expected value tables, decision trees, and Monte Carlo simulation. There is a chapter on U.S. Federal Income Tax as applied to both IPRO and integrated oil companies. Land concepts are discussed and a technique for determining working interest and net revenue interest in complex deals is presented. One chapter covers the three styles of report - letter, formal, and oral - with specific suggestions for the report content and example reports.

This fully updated textbook is intended for the economic geologist who deals with the evaluation of deposits at an early stage of development. It offers rules for quick and easy calculations based on the application of approximate data. It provides both the student and the geologist in the field with a complete set of rules and methods enabling them to perform a quick initial evaluation of the deposit without the support of specialists or computers – even if he is left to his own resources. All rules for calculations are illustrated with examples, and mistakes and pitfalls the authors encountered during their careers are pointed out.