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Extending the Life of Developed Wells

Extending the Life of Developed Wells

Presented by:
Randy Freeborn, Principal Industry Advisor, Aucerna
Rod Sidle, Industry Consultant, Aucerna

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?

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.

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.
About the presenters
Randy Freeborn

Randy Freeborn

Principal Industry Advisor, Aucerna
Rod Sidle

Rod Sidle

Industry Consultant

Available recordings

Each recording contains the same content aside from the Q&A session specific to each region.
North America & Europe
Wednesday, October 7th, 2020. 9:00 AM MDT | 10:00 AM CDT | 5:00 PM CET
Asia-Pacific
Thursday, October 8th, 2020. 11:00 AM AEST | 9:00 AM SGT

About this webinar

This is a Recording from
  • October 7th (North America & Europe)
  • October 8th (Asia-Pacific)
Presented by
Randy Freeborn - Principal Industry Advisor, Aucerna
Rod Sidle - Industry Consultant
duration

45 Minutes

description

The Webinar will describe proper reserve treatment for the additional commercial production that comes when a prior estimated end-of-reserves date is extending to a further future date. This extension of reserves life from an existing, producing well (with PDP reserves) may seem to be just more PDP reserves. However, in some cases, the additional volumes are not PDP but PUD reserves and may not even be reserves at all. The Webinar will look at the SPE PRMS definitions for qualitative guidance then give a specific quantitative example using Aucerna’s Val Nav software.

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