Determine the right reserves category for additional production.
Join us for a Live 30 minute Webinar followed by a 15 minute Q&A Session.
It’s time to update last year’s reserve estimates. The production forecast for your existing producing wells is confirmed by this year’s data – no change of the forecast is needed. But plans change, operational circumstances change; so what had been seen as the end of commercial production for the current well (and completion) now is projected to be later. Thus, additional commercial recovery is expected. These additional volumes come from an existing producing well and the current completion. These changes do not include any work on the well itself, so does that mean the additional volumes are Proved Developed Producing (PDP) reserves?
In many cases, the evaluation workflow causes this to be the default answer. The evaluator updates the evaluation model with the new plans and operational circumstances then runs the field and well production and economics model to determine the new estimated reserves. Any resulting changes to Proved Undeveloped (PUD) volumes are changes to PUD reserves. But are any resulting changes from the new plans to PDP wells automatically PDP reserves?
North America & Europe
Wednesday, October 7th, 2020.
9:00 AM MDT | 10:00 AM CDT | 5:00 PM CET
Thursday, October 8th, 2020.
11:00 AM AEST | 9:00 AM SGT
What will you learn?
- How to recognize when additional reserves in a PDP well should not be booked as PDP.
- What changes in operational or contractual conditions may enable increased reserve recognition.
- How to ensure all additional reserves from a new investment are counted to justify the expenditure.
- A global economic limit calculation that extends project life is not enough to establish reserves classification. The calculation must also subtract proved developed reserves (PDP) from total proved (TP) to establish those undeveloped reserves.
- Val Nav’s "Common Termination Entity" or CTE seamlessly determines the extended termination date but also does the reserves difference for proper classification and valuation.
The Webinar will describe several examples where the life of a producing (PDP) well was extended, but the incremental reserves resulting from the extension would be properly classified as Proved Undeveloped (PUD) according to practice recommended by SPE Petroleum Resources Management System 2018 (PRMS). In addition to this qualitative description of reserves from extended life, the Webinar will cover the quantitative determination of the additional volumes by showing how Val Nav is unique in its ability to identify both the correct classification and reserves assignment when compared with other legacy reserves software.
Principal Industry Advisor
About the Presenter:
Randy Freeborn is an expert in empirical forecasting, type wells and related technology. He is a thought leader at Aucerna, inventing technology and assisting clients. A 45-year professional engineer, he is a former SPE Distinguished Lecturer and is working with SPEE’s newest Monograph on type wells. Freeborn has prepared numerous technical papers for presentation at conferences, workshops and industry meetings and has been a guest lecturer at the University of Houston and Texas A&M.
About the Presenter:
Rod Sidle consults for Aucerna and other oil and gas industry clients. His industry experience, including 35 years with Royal Dutch Shell, has primarily been in reservoir engineering and economics with a focus on reserves estimation. Rod is a member of SPE and SPEE and has served on the Reserves Committee of each society. Since retiring from Shell, Rod has been a lecturer at Texas A&M University in the Petroleum Engineering Department; a Director of Reserves at Occidental Petroleum; and the Reserves Manager for Sheridan Production Company. He has co-authored seven SPE papers, primarily on reserves related topics.
What's coming up next in Aucerna Connects?
Aucerna Connects will run monthly webinars, often multiple times a month on a variety of days, and in a variety of time zones to support our global industry. You can find a list of all webinars, past, and future by clicking on the link.