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| pdf = http://archives.datapages.com/data/specpubs/methodo1/images/a095/a0950001/0000/00380.pdf
| pdf = http://archives.datapages.com/data/specpubs/methodo1/images/a095/a0950001/0000/00380.pdf
}}
}}
''Intro should go here''
==Data requirements==
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 sections, 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 sections, 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
The ''net cash flow'' (NCF) for each assumed time period, including time 0, can be determined using the following equation.
The ''net cash flow'' (NCF) for each assumed time period, including time 0, can be determined using the following equation.
:<math>\mathbf{Equation}</math>
:<math>\text{After-tax NCF } = (\text{Net revenue interest}~ \times ~\text{Production} ~\times ~\text{Wellhead price})~ - ~\text{Wellhead taxes}~ - ~\text{Operating costs}~ - ~\text{Federal income taxes}~ - ~\text{Investments} \ </math>
Some of the economic parameters presented later utilize ''after-tax net operating income'' (NOI) as a measure of profit. After-tax NOI is defined as follows:
Some of the economic parameters presented later utilize ''after-tax net operating income'' (NOI) as a measure of profit. After-tax NOI is defined as follows: