oilsim day 2
DESCRIPTION
OilSim day 2. Task 3 yesterday. Task 5. Task 4. Licence award , spread risk-negotiations. Depletion plan & prodution profile. Exploration & appraisal drilling. 3D seismic maps. Drilling rigs , Suppliers for The drilling phase. Recovery factor , Depletion strategy - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/1.jpg)
OilSim day 2
Licence award,spread risk-negotiations
3D seismic maps
Task 3yesterday
Today’s Challenges
Exploration & appraisal drilling
Drilling rigs ,Suppliers forThe drilling
phase
Recovery factor,
Depletion strategy
Number of wells,
Tube size
Task 4 Task 5
Depletion plan & prodution profile
![Page 2: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/2.jpg)
Single Rigs
Double Rigs
Triple Rigs
![Page 3: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/3.jpg)
Max drilling depth is important
Rig cost = drilling days * day rate
![Page 4: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/4.jpg)
• Base camp (accomodation, cantine,+storage of equipment)• Transport on land, cars/trucs• Transport by air (personnel, equipment)• Well services (pipe, casing , drilling mud• Well analysis (electrical logs, cores)
![Page 5: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/5.jpg)
Upto 9 Star quality- Good: normally
costs more Bad: cheaper, but reliability is
low, so you risk extra drilling time and extra costs
![Page 6: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/6.jpg)
EIA survey: more knowledge about the area.
Less probability for drilling problems.
Less severe consequences if you run into problems.
![Page 7: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/7.jpg)
EIA: enviromental impact analysis shows where it may be difficult to drill.
Place your mouse where to drill
![Page 8: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/8.jpg)
Layer 1 Cretaceous
Layer 2 Paleocene
Layer 3 Eocene
![Page 9: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/9.jpg)
![Page 10: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/10.jpg)
![Page 11: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/11.jpg)
Proven volume (MBOE) counts Test may increase proven volume Remember to tick the boxes!
![Page 12: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/12.jpg)
![Page 13: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/13.jpg)
![Page 14: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/14.jpg)
Volume Range, e.g. 1-897 Proven Reserves e.g. 1
![Page 15: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/15.jpg)
The total proven oil and gas = 18MBOE Allowing for 25% recovery factor0.8 Production profile factor and 10% discount factor per year
![Page 16: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/16.jpg)
18MBOE x 25% recovery factor = 4.5MBOE
Sales price without discount factor -> 4.5MBOE x $50 = $225,000,000
Sales price allowing for production profile-> $225,000,000 x 0.8 (production factor)
= $180,000,000 Reduced sales price with 10% discount
factor per year = $ 67,397,022
![Page 17: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/17.jpg)
From Probable volume to proven reserves
![Page 18: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/18.jpg)
Exploration well: 0 to 1572 MBOE (after drilling) 11 to 1266 MBOE (after testing)
First appraisal well: 25 to 1033 MBOE (after drilling) 34 to 910 MBOE (after testing)
Second appraisal well: 65 to 850 MBOE (after drilling) 101 to 752 MBOE (after testing)
Only proven MBOE counts
![Page 19: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/19.jpg)
Appraisal wells - proven reserves increase
Range between proven and possible is decreased
![Page 20: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/20.jpg)
Expected costs ifyou developed thefield (CAPEX) andproducedthe oil (OPEX)
Now total expenses are lower than the sales value and so we have a positive licence value
![Page 21: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/21.jpg)
After your first drill in each well, reprocess seismic
Decide which discoveries to drill how many appraisal wells into
Ultimately, you should either: Get a positive net present value, Or a conclusion that additional
appraisal wells will not result in a net present value
![Page 22: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/22.jpg)
Click on Apply for More Funds Tab. 1 KP for each $100,000 applied for. Answer the questions: All correct gives
cash and you can keep CPs. One wrong gives cash and you keep ½ of your CPs. Two wrong gives ½ cash and you lose all CPs. All wrong, you get no cash and lose all CPs.
Expensive money if less than 10 knowledge points: Apply for cash and be fined $5million for each $20million requested.
![Page 23: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/23.jpg)
Licence award,spread risk-negotiations
3D seismic maps
Task 3yesterday
Today’s Challenges
Exploration & appraisal drilling
Drilling rigs ,Suppliers forThe drilling
phase
Recovery factor,
Depletion strategy
Number of wells,
Tube size
Task 4 Task 5
Depletion plan & prodution profile
![Page 24: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/24.jpg)
Make a well plan for each reservoir in your block, choosing: Number of production wells Tubing size
Aiming to choose a plan that maximises value of block
Increased sales value Decreased drilling costs
![Page 25: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/25.jpg)
Highest well flow rate
Read the maximum well flow rate Most suitable Tube size
Most suitable tube
![Page 26: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/26.jpg)
![Page 27: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/27.jpg)
1. Click the Reservoir tab
2. Click the magnifyingglass for the reservoir3. Study the data forthe reservoir
![Page 28: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/28.jpg)
Click on Drilling Rig
![Page 29: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/29.jpg)
![Page 30: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/30.jpg)
![Page 31: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/31.jpg)
![Page 32: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/32.jpg)
1. Submit plans with different number of wells and tubing sizes
1. Review Reservoir information after each revised plan
2. Aiming to maximize sales value and minimize drilling costs, whilst increasing Recovery Factor
3. You can amend your well plans until the deadline
4. Credibility points – upto 100 kp if plans are optimal for all your reservoirs
5. After deadline – Value of Licence will be adjusted based on final Well Plan submitted
![Page 33: OilSim day 2](https://reader035.vdocuments.us/reader035/viewer/2022062803/568146d9550346895db40e42/html5/thumbnails/33.jpg)
Results
¯, ShcDepth
Degree of fillReservoir-thickness
Area Input data
Gross rock volume Net to Gross Porosity
Hydrocarbon saturation
Oil shrinkage /
Formation volume factor
Gas-oil-ratio
GRV x N/G x Phi x Shc x Bo/FVF x GOR = In-Place resources
In place resources x Recovery factor = Recoverable oil/gas
Minimum – Most likely – Maximum - of each parameter
Monte Carlo simulate in GeoX
P90 – Mean – P10 recoverable resources