Abstract
This chapter analyses a waterflood project, where recoverable oil must be estimated, and one of four production schedules is used to generate a revenue stream. The model combines volumetric estimates, prices, costs, and production scheduling. The overall objective is to estimate the internal rate of return (IRR) for the project over an 18-year horizon, given information about initial costs, operating costs, reservoir description, production schedules, prices, working interest, and taxes. A key aspect of the model is the production schedule (i.e., the percentage of total reserves extracted each year). Four possible production schedules are listed. The model is constructed so that on each iteration of the simulation, one of these schedules is chosen randomly. Therefore, outputs from the simulation are averages over the possible schedules.
Reference17 articles.
1. Berkun, S. (2005). Art of Project Management. O'Reilly Media.
2. Berkun, S. (2008). Making Things Happen: Mastering Project Management (Theory in Practice), Revised Edition. O'Reilly Media.
3. BernsteinP. L. (1996). Against the Gods: The Remarkable Story of Risk. John Wiley & Sons.
4. Construction Project Manager’s Pocket Book
5. ChatfieldC.JohnsonT. (2000). Microsoft Project 2000 – Step by Step. Microsoft Press.