Well Well Number Engineer Date Economic Data Frac Fluid Unit Cost Proppant Unit Cost Fixed Equipment Cost Workover Cost Unit Revenue for Production Oil/Gas Revenue Escalation Rate Discount Rate Time Period Frac Costs Frac Fluid Frac Prop Size Volume Cost (Tonnes) (m³) (€) Base 0 0 0 Scenario 1 T 0.00 Scenario 2 T 0.00 Scenario 3 T 0.00 Scenario 4 T 0.00 Scenario 5 T 0.00 Scenario 6 T 0.00 Scenario 7 T 0.00 Scenario 8 T 0.00 Scenario 9 T 0.00 Scenario 10 T 0.00 USER GRAPH 8.00 10.00 12.00 years NPV
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WellWell NumberEngineerDate
Economic DataFrac Fluid Unit CostProppant Unit CostFixed Equipment CostWorkover CostUnit Revenue for Production Oil/GasRevenue Escalation RateDiscount RateTime Period
Frac CostsFrac Fluid Frac PropSize Volume Cost
(Tonnes) (m³) (€)Base 0 0 0Scenario 1 T 0.00Scenario 2 T 0.00Scenario 3 T 0.00Scenario 4 T 0.00Scenario 5 T 0.00Scenario 6 T 0.00Scenario 7 T 0.00Scenario 8 T 0.00Scenario 9 T 0.00Scenario 10 T 0.00
USER GRAPH
0 2 4 6 8 10 120.00
2.00
4.00
6.00
8.00
10.00
12.00 years
Frac Size (tonnes)
NP
V
CHART 1
0 2 4 6 8 10 120.00
2.00
4.00
6.00
8.00
10.00
12.00 years
Frac Size (tonnes)
NP
V
Economics 1170 ron / t Merisani Oil Adrian M. Feb 10, 2011Net Price 500 ron / 1000 m3 Merisani Gas
Oil/Gas/Water°Cbarha% TVD Top PerforationmD Net Pay Height%
Lower Propped Avg. Propped Fcd Cumulative Net Height Width Production Production
(m) (mm) (m³) (m³)0 0 0 0 0
0 00 00 00 00 00 00 00 00 00 0
Recommended frac size (tonnnes):Time to Recover Initial Investment (days):
NPV Rt/(1+i)^twheret = the time of the cash flowi = the discount rate (the rate of return that could be earned on an investment in the financial markets with similar risk)Rt = the net cash flow (the amount of cash, inflow minus outflow) at time t. For educational purposes, Ro is commonly placed to the left of the sum to emphasize its role as (minus) the investment
0 2 4 6 8 10 120
2
4
6
8
10
12 Net Present Value Tonnes
Days
NP
V
Net Present Value Tonnes
CHART 2
0 2 4 6 8 10 120
2
4
6
8
10
12 Net Present Value Tonnes
Days
NP
V
m Fluid Systemm Gel Loading kg/m3m Proppantm Proppant Size Mesh
i = the discount rate (the rate of return that could be earned on an investment in the financial markets with similar risk)Rt = the net cash flow (the amount of cash, inflow minus outflow) at time t. For educational purposes, Ro is commonly placed to the left of the sum to emphasize its role as (minus) the investment
0 2 4 6 8 10 120
2
4
6
8
10
12 Net Present Value Tonnes
Days
NP
V
CHART 2
0 2 4 6 8 10 120
2
4
6
8
10
12 Net Present Value Tonnes
Days
NP
V
Rt = the net cash flow (the amount of cash, inflow minus outflow) at time t. For educational purposes, Ro is commonly placed to the left of the sum to emphasize its role as (minus) the investment
1. Predict post fracture geometry in formation for well .
2. Determine optimum frac size using Net Present Value (NPV) analysis.
PROCEDURE:
1. Determine rock properties from customer supplied logs and information. Create model in Meyers Fracture Simulator.
2. Use Meyers Fracture Simulator (MFRAC) to predict fracture geometry.
3. Use Meyers Production Simulator (MPROD) to predict post fracture production.
4. Perform NPV analysis and report results.
ECONOMIC INPUTS:
Frac Fluid Unit Cost 0Proppant Unit Cost 0Fixed Equipment Cost 0Workover Cost 0Unit Revenue for Production Gas (Net) 0Revenue Escalation Rate 0Discount Rate 0Time Period 0
MISCELLANEOUS INPUTS:
Fluid System 0Gel Loading 0Proppant Type 0Proppant Size 0
Various sized fracture treatments were modeled in Meyers Fracture Simulator. In conjuctionwith Meyers Production Simulator, net present value analysis was performed for the formation at . Based on the year NPV the optimum treatment sizewould be in the tonne range. The initial investment is estimated to be recovered in days.
Reported by:0
0 2 4 6 8 10 120
2
4
6
8
10
12Net Present Value Tonnes
Time (days)
NP
V (
€)
0 2 4 6 8 10 120.00
2.00
4.00
6.00
8.00
10.00
12.00Net Present Value vs. Time
Frac Size (tonnes)
NP
V (
€)
? tonnes
0
0
0 °C
0 bar
0.0 ha
0 %
0.000 mD
0 %
0.000
0.0 m
0.0 - 0.0 m0.0 - 0.0 m0.0 - 0.0 m0.0 - 0.0 m
0.0 m
Determine rock properties from customer supplied logs and information. Create
Use Meyers Production Simulator (MPROD) to predict post fracture production.