Changes

The basis of economic evaluation of any proposed drilling venture—a new field, pool, or just a single well—is the ''cash flow model'' of investments, expenses, taxes, and wellhead revenues involved with the project. The values for the parameters in this model must come from a geotechnical analysis (including maps, [[cross section]]s, and reservoir analysis) of the anticipated new field or well and from geotechnical estimates of area, ultimate recoverable reserves, and projected well production schedules. Here are the general data that are required:

The basis of economic evaluation of any proposed drilling venture—a new field, pool, or just a single well—is the ''cash flow model'' of investments, expenses, taxes, and wellhead revenues involved with the project. The values for the parameters in this model must come from a geotechnical analysis (including maps, [[cross section]]s, and reservoir analysis) of the anticipated new field or well and from geotechnical estimates of area, ultimate recoverable reserves, and projected well production schedules. Here are the general data that are required:

# All front end costs—leases, geology and geophysics (G & G), overhead, exploration drilling, and completion costs

# All front end costs—leases, geology and geophysics (G & G), overhead, exploration drilling, and completion costs

# Projected dry hole costs

# Projected [[dry hole]] costs

# Ultimate recoverable reserves (including secondary recovery)

# Ultimate recoverable reserves (including secondary recovery)

# Field area (and thus number of producing wells), unless it's a single-well project

# Field area (and thus number of producing wells), unless it's a single-well project