DEPLETION - SCOPING MODEL RW-UoP Software

INTRODUCTION
This is a simple spreadsheet model for use in initial scoping studies for a
discovered undersaturated oil field.

It is a full field, single well aggregation model, assuming common reservoir

properties for all wells allowing various development plans to be evaluated. It
can be used for straight depletion with oil expansion plus solution gas drive.
This is a ‘black oil’ type model with Bo and Rs modeled as shown below.

Bo Rs
1.5
1000
1.45
1.4 800
1.35
Bo (RB/stb)

Rs (scf/stb)
1.3 600
1.25
1.2 400
1.15
1.1 200
1.05
1 0
100 1100 2100 3100 4100 5100 6100 7100 200 1200 2200 3200 4200 5200 6200 7200
pressure (psi) pressure (psi)

Figure 1 Bo and Rs with pressure

The model is designed with a single well and an aggregation model as shown
below.

Vcell

re

Figure 2 outline of model –single well and aggregation

Well costs and oil facilities processing plant costs are input

Economic indicators for the proposed development plan are output. NPV and PI
directly and IRR (RROR) can be determined by finding the discount rate resulting
in a zero NPV.
INPUT (green boxes)
Technical data
Oil in place - Rb (reservoir barrels)
Permeability - mD
Porosity (ϕ) - dimensionless
Connate water saturation (Swc) - dimensionless
Completion length (h) - ft
Oil viscosity (μ) - cP
Reservoir temperature (T) – degrees F
Initial reservoir pressure (Pi) - psi
Bubble point pressure ( p(bub)) - psi
Bottom hole pressure (pbh) - psi
Wellbore radius (rw) - ft
Maximum oil rate /well - Rb/d
Initial Formation Volume Factor (FVF) (Boi) - Rb/stb
Formation Volume Factor at bubble point – Bo(pb) – Rb/stb
Solution Gas Oil Ratio (Rs) – scf/stb

Assumed conditions
Number of production wells and timing (over 5 year period)
Plateau rate –(mmstb/d)

Economic data
Well cost - ($mm/ well)
Operation costs (opex) – ($mm/year)
Oil price – ($/bbl)
Gas price – ($/mmscf)
Facilities cost/mstb/day – ($mm)
Assumed discount rate – (%)
Tax rate - (%)
Inflation (price elevation) – (%)

OUTPUT (yellow boxes)

Recoverable oil (reserves) (mmstb)
Recovery Factor (%)
Oil in place –surface conditions – (stb)
Net Present Value (NPV) of development – ($mm)
Profitability Index (PI) - dimensionless

Plots available
(1) Potential rate and capped rate (mstb/d) and cumulatives (mmstb)
 3.00E+02 7.00E+01

6.00E+01
2.50E+02
potential rate
5.00E+01 ( mstb/d)
2.00E+02

mmbbl Cumulative
capped rate
4.00E+01
Rate (Mbbl/d) / required

(mstb/d)
1.50E+02
potential
3.00E+01
Cumulative
(mmstb)
)

1.00E+02
2.00E+01 capped rate
cummulative
(mmstb)
5.00E+01
1.00E+01

0.00E+00 0.00E+00
0 2 4 6 8 10
Years

(2) Field production rate

(3) economic indicators

discounted cash flow & NPV10 (real) & total cash flow
(3% infla on)
700

600
DCF (real) at discount
500 rate of 10.00%

400
Cum DCF (real) at
300 discount rate of 10.00%
mm $

200
total discounted capex
100

0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
NPV 10.00%
-100
years
-200