Task 1: (100 Marks) Appendix 1 Production Data Project # 1 Project #2 Project #3 q q (STB/day) Time (months) 0 MCF/day) 10000 Your job is to do the following for each set of the provided data and then select the best project that would yield the highest net profit to invest in: a) First, identify a suitable decline model using plotting techniques (Provide all the plots in your report) (You must send your Excel sheet by e-mail) (30 Marks) b) Determine models parameters (6 Marks) c) Predict the production rate at the end of project life (stated above) (6 Marks) d) The total reserves that will be recovered oil, gas, or both) at the end of project life. (6 Marks) e) Total Revenues for each project (6 Marks) f) Calculate the BOE for the projects that will produce oil & gas (6 Marks) 3) Calculate the Cost bblor Cost BOE (6 Marks) h) Net profit for each project (6 Marks) i) Summarize all the above results in a table as shown in Appendix 2 (5 Marks) j) Rank the three projects in terms of (2 Marks) The lowest cost per bbl The highest net profit k) Write a report that contains the following: (20 Marks) Executive Summary Methodology Results Conclusion Additional Information you will need for the evaluation can be found below. Time (year) 0 0.1 0.2 0.3 04 0.5 0.2 0.6 0.7 0.8 0.9 Time (year) 0.00 0.20 0.30 0.40 w.14 0.50 0.24 0.60 0.70 0.80 0.90 9290 8980 woy 8680 woy 8400 0904 8140 4 You have been hired recently in KOC and during the first week of your employment, four development projects for a newly discovered field in Burgan were proposed to KOC. Due to the oil price crises and the risk associated with new projects these days as a result of the fluctuation in the oil and gas prices, the company is in the process of investing in ONLY one project Your manager has assigned you to work in the project evaluation team and this is considered as the first challenge you will face in your career life and you must prove yourself and prove that you gained enough knowledge from ACK that made you competent to evaluate projects. Your manager gave you 3 sets of production data for the three projects with no information on how these fields decline. In addition, the following production data for each project was provided to you (Appendix 1). Project 1: An onshore oil & gas well is expected to start with a daily flow rate of 10,000 STB/day and has a GOR of 1.6 MCF/STB. The reservoir section extends from 14400 to 15150 A. Project Life 10 years. Project 2: An onshore oil well is expected to start with a daily flow rate of 10,000 STB/day. The reservoir section extends from 11200 to 11970 ft. Project Life 10 years. Project 3: An offshore deep gas well is expected to start with a daily flow rate of 10,000 MCF/day with a liquid to gas ratio of 6 STB/MCF. The reservoir section extends from 17000 to 17750 ft. Project Life 7 years. 7450 maca 7250 7050 6870 1.1 1.2 9 (STB/day) 10000 9634 9294 8977 8977 8682 002 $402 8405 8145 7900 1900 7670 7453 7248 270 7054 6870 6695 es 6529 6371 6221 6077 5940 5809 5684 5564 5449 5338 5232 5180 5130 5032 4938 184 4847 4760 4675 +072 4594 4515 4439 4365 CO2 6370 6220 6080 10000 9049 8188 7409 7409 6704 6066 wood 5489 4967 4494 0 4067 10 3680 3330 3013 2002 2726 2467 2003 2232 2020 1828 1654 1497 1354 1225 1109 1003 908 1.4 1.5 1.6 1.7 1.8 1.9 2 21 2.2 2.3 2.4 1 5 2.5 2.6 2.7 2.8 29 2.9 The following development plan was provided for each project: - For Project # 1 you will need 6 producers and 2 injectors - For Project # 2 you will need 1 producer and 1 injector - For Project #3 you will need 2 producers and 2 injectors The cost to drill a well is approximately $13 Million The cost to complete producers ONLY is $9 Million/producer for Project #1, $6 Million producer for Project # 2, and $10 Million producer for Project #3 The operational costs for producing wells are as follows: $7.5 Million year for onshore wells - $11.5 Million year for offshore wells Assume 6 MCF/bbl as a conversion factor to convert the gas to BOE Oil Price is $76.23/STB & Gas Price is $3.85/MCF 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1 70 1.80 190 1.90 2.00 2.00 2.10 220 2.30 2.40 50 2.50 2.60 2.70 2.80 2.80 2.90 3.00 3 10 3.20 3.30 3.40 3.50 12 12 13 14 15 16 16 17 18 18 19 20 20 21 21 22 23 24 5680 5560 3300 5450 5340 4840 4760 4590 4510 4440 4360 31 3. 32 3.3 3.4 End of the assessment 4290 Page 4/7 Page 5/7 Page 6/7 3.60 3.70 3.80 3.90 4220 4160 4090 4030 Appendix 2 Project 3 Summary of all the results for the three projects Unit Project 1 Project 2 Suitable Decline Model Model Parameter (b) 1/year Production Rate at the end of the Project STB/day or MCF/day Total Oil Reserve MMSTB Total Gas Reserve BCF Total BOE MMBOE Total Revenue $Million Drilling Cost $Million Completion Cost $Million Operational Cost $Million Total Technical Cost $Million Cost/bbl or Cost/BOE $/STB or $ BOE Net Profit $Million