Professional Documents
Culture Documents
Acquisition Costs
Costs incurred in acquiring property: rights to explore, drill, and
produce oil and natural gas.
Exploration Costs
Costs incurred in exploring property: identifying areas that may
warrant examination and examining specific areas .
Development Costs
Costs incurred in preparing proved reserves for production:
obtain access to proved reserves and to provide facilities for
extracting, treating, gathering, storing oil/gas.
Production Costs
Costs incurred in lifting the oil and gas to the surface and in
gathering, treating, and storing oil/gas.
Exploratory Well
A well drilled in an unproved area.
Development Wells
If additional wells are drilled within the proved area, to the
proved depth.
Exploratory Well
A well drilled within a proved area with respect to the surface
acreage, but to shallower depth, is not being drilled in a proved
area.
Delineation Well
A well drilled along what the engineers believe to be the outer
perimeter of the reservoir.
Extension Well
COPAS
Formed in 1961 - activities and projects directed primarily
toward issues and problems encountered in joint interest
operations - issued "pronouncements" in the form of procedures,
guidelines, interpretations.
Unproved Reserves
Proved Reserves
those reserves that are:
1. Reasonably certain to be recovered in the future
2. From known reservoirs under existing economic and operating
conditions, such as
a. Current prices and costs
b. Current technology
3. Economic producibility supported by actual production or
conclusive formation test.
Acquisition costs
Successful Efforts---Capital
Full Cost ----Capital
G&G costs
Successful Efforts---Expense
Full Cost ---Capital
Successful Efforts----Capital
Full Cost---Capital
Production costs
Successful Efforts---Expense
Full Cost---Expense
Field
An area consisting of a single reservoir or multiple reservoirs all
grouped on or related to same individual geological structure.