| Example Wells in U.S. Oil and Gas Plays (map and table are shown below) | |
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In addition to the working copies of the Petroleum Evaluator spreadsheets (that you would use to project cash flow for a well), the package includes cash flow projections for hypothetical wells in 70 onshore U.S. oil and gas plays. These cash flow projections are provided as screenshot images of the spreadsheets. The complete set of Petroleum Evaluator spreadsheets (8 spreadsheets and 6 graphs) is shown for each well. Cash flow is projected for four oil and gas price levels, so that for the 70 wells there are a total of 280 Excel files (screenshot images of 2,240 spreadsheets and 1,680 graphs, in all). These files, along with graphs that summarize the results of all the wells together and grouped by type of play (see description at bottom of page), enable the user to quickly get a feel for the relative risk and profit/loss potential of numerous geographically and geologically diverse oil and gas plays. |
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Features of the example well spreadsheets: |
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Four oil and gas price levels |
Cash flow is projected for each example well at four oil and gas price levels: $50/bbl, $5.00/mcf; $75/bbl, $7.00/mcf; $100/bbl, $8.00/mcf; and $125/bbl, $9.00/mcf. Annual price escalation of 2% is used in the spreadsheets. |
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Each
well is normalized to a |
The cash flow projection for each well shows the 10-year NPV of the projected income stream resulting from a $10,000-investment in the well. This enables you to compare the NPVs of all the wells even though the wells have significantly different drilling/completion costs. | ||
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Risk-adjusted by a professional geologist |
The cash flow projections in the spreadsheets are risk-adjusted, based on the chances of various production rates occurring (as provided to petroleumevaluator.com by a veteran petroleum geologist). | ||
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Recent costs are used |
Well drilling costs and production rates are based on data contained in publicly available company reports, industry publications, and production databases. 2006-2008 costs are used. | ||
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Results
are summarized in |
The results of the cash flow projections for the 70 example wells at the four price levels are summarized in 6 tables and 18 graphs (see examples below). Wells in the tables and graphs are sorted by type of play (shale gas, coalbed methane, conventional oil or gas, etc). | ||
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Example
Wells |
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| After income tax, with reinvestment | ||||||
| Map no. |
Play |
Location, well depth, etc. |
IRR (Scenario 3 medium production rate) | 10-yr NPV (Scenario 3, medium production rate) | 10-yr NPV (Scenarios 1-4), risk-adjusted | |
| 1 | Barnett Shale, north-central TX core area | North-central TX core area, 9,000 ft. total depth, with lateral, slick-water frac |
(actual
values for four oil and gas price levels are shown in the |
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| 2 | Deep Wilcox Trend, TX Gulf Coast | Victoria County, TX, 13,500 ft. total depth, 3-D seismic-delineated | xx% | $xx,xxx | $xx,xxx | |
| 3 | Vicksburg/Frio/Queen City/Wilcox, south TX | Hidalgo County, TX, 10,500 ft. total depth, 3-D seismic-delineated | xx% | $xx,xxx | $xx,xxx | |
| 4 | Deep Bossier, central TX | Leon County, TX, 20,000 ft. total depth, 3-D seismic-delineated | xx% | $xx,xxx | $xx,xxx | |
| 5 | Cotton Valley Lime, central TX | Freestone Trend, Freestone County, TX 13,000 ft. total depth, fracture treat five intervals | xx% | $xx,xxx | $xx,xxx | |
| 6 | Cotton Valley Sandstone, east TX, vertical | Carthage Field, Panola County, TX 9,000 ft. total depth, fracture treat | xx% | $xx,xxx | $xx,xxx | |
| 7 | Travis Peak, east TX | Shelby County, TX 8,000 ft. total depth | xx% | $xx,xxx | $xx,xxx | |
| 8 | James Lime, east TX | Shelby County, TX 6,200 ft. total depth, 2 - 7,000 ft. laterals, multi-stage frac | xx% | $xx,xxx | $xx,xxx | |
| 9 | Rodessa (Hill) Trend, northeast TX | Cass County, TX 6,000 ft. total depth | xx% | $xx,xxx | $xx,xxx | |
| 10 | Woodbine sand, central TX | Leon County, TX 6,000 ft. total depth | xx% | $xx,xxx | $xx,xxx | |
| 11 | Cotton Valley Sandstone, east TX, horizontal | Panola County, TX, total depth 9,000 ft. with lateral | xx% | $xx,xxx | $xx,xxx | |
| 12 | Cotton Valley Sandstone, northwest LA, horizontal | Northwest Louisiana, depth 9,000 ft. with lateral | xx% | $xx,xxx | $xx,xxx | |
| 13 | Olmos Sand, south TX | Webb County, TX, depth 5,800 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 14 | Austin Chalk re-entry, Giddings Field | Giddings Field, TX, re-enter 9,000-ft. vertical well and drill two 2,000-ft. laterals | xx% | $xx,xxx | $xx,xxx | |
| 15 | Wolfcamp tight sandstone, Permian Basin | Terrell and Crockett Counties, TX, total depth 6,400 ft., vertical | xx% | $xx,xxx | $xx,xxx | |
| 16 | Tuscaloosa sand, LA | Tensas and Franklin Parishes, LA, total depth 10,900 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 17 | Frio sands, northeast LA, northwest MS | Northeast LA and northwest MS, total depth 3,500 ft., vertical well, location delineated by 3-D seismic bright spot technology | xx% | $xx,xxx | $xx,xxx | |
| 18 | Hackberry sands, south LA | South Louisiana, depth 8,000 ft, location based on 3-D seismic bright spot | xx% | $xx,xxx | $xx,xxx | |
| 19 | Cibcides hazzardi (upper Frio) sands, south LA | South Louisiana, depth 8,750 ft, directionally drilled | xx% | $xx,xxx | $xx,xxx | |
| 20 | Smackover Reef/Shoal, southern AL | Southern Alabama, depth 14,000 ft, vertical | xx% | $xx,xxx | $xx,xxx | |
| 21 | Rodessa, Sligo, Hosston, south-central MS | South-central Mississippi, depth 14,500 ft., vertical | xx% | $xx,xxx | $xx,xxx | |
| 22 | Marcellus Shale, Western Pennsylvania | 6,000 ft. total depth, vertical | xx% | $xx,xxx | $xx,xxx | |
| 23 | Marcellus Shale, Western Pennsylvania | 6,000 ft. vertical, with 2,000-ft. horizontal lateral | xx% | $xx,xxx | $xx,xxx | |
| 24 | Coalbed methane, eastern KY | Eastern Kentucky, depth 3,000 ft., vertcal | xx% | $xx,xxx | $xx,xxx | |
| 25 | Huron Shale, West Virginia | Cabell, Mason Counties, West Virginia, | xx% | $xx,xxx | $xx,xxx | |
| 26 | Coalbed methane, western PA | Cambria, Fayette, Westmoreland Counties, Pennsylvania, depth 1,400 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 27 | Medina Sandstone, western PA | Western Pennsylvania, depth 6,200 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 28 | Bradford Sandstone, western PA | Western Pennsylvania, depth 4,000 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 29 | Clinton Sandstone in gas prone area, east. OH | Eastern Ohio, depth 5,500 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 30 | Rose Run sandstone, eastern OH | Eastern Ohio, 5,800 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 31 | Trenton-Black River Group, southern NY | Southern New York, depth 11,500 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 32 | New Albany Shale, southwestern Indiana | Western Indiana, vertical depth 1,800 ft., with a horizontal lateral | xx% | $xx,xxx | $xx,xxx | |
| 33 | Stones River Formation, south. KY | South-central Kentucky, depth 1,200 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 34 | Coalbed methane, Illinois | Illinois Basin, 500 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 35 | Aux Vases, Spar Mtn., McClosky, St. Louis, IL Basin | Illinois Basin, depth 3,200 ft vertical | xx% | $xx,xxx | $xx,xxx | |
| 36 | Antrim Shale, northern MI | northern Michigan Basin, depth 2,100 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 37 | Cherokee Coalbed Methane, se KS, Cherokee Basin | Cherokee Basin, southeastern Kansas, depth 2,400 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 38 | Lansing-Kansas City, Central KS Uplift | Central Kansas Uplift, depth 4,000 ft. vertical, structure delineated by 3-D seismic | xx% | $xx,xxx | $xx,xxx | |
| 39 | St. Louis Limestone, western KS | Western Kansas, depth 4,000 ft. vertical, structure delineated by 3-D seismic | xx% | $xx,xxx | $xx,xxx | |
| 40 | Woodford Shale, east. OK | Eastern Oklahoma, depth 10,000 ft vertical with 1,000-ft. lateral, multiple frac treatments | xx% | $xx,xxx | $xx,xxx | |
| 41 | Fayetteville Shale, Arkoma Basin | Arkoma Basin, northern Arkansas, depth 6,200 ft. vertical with 2,000-ft. lateral, multiple frac treatments | xx% | $xx,xxx | $xx,xxx | |
| 42 | Wapanucka, Cromwell, Woodford Formations, Arkoma Basin | Arkoma Basin, northern Arkansas, depth 6,000 ft. vertical with 3,500-ft. lateral, multiple frac treatments | xx% | $xx,xxx | $xx,xxx | |
| 43 | St. Louis Limestone, Chester, Hunton, Anadarko Shelf | Anadarko Shelf, north-central Oklahoma, depth 8,000 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 44 | Deep gas sands in Miss. Goddard Shale and Overbrook, so. OK | Southern Oklahoma, depth 16,000 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 45 | Chester Sandstone, OK panhandle | Oklahoma Panhandle, depth 7,400 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 46 | Morrow Sandstone, Anadarko Basin, OK/TX Panhan. | Oklahoma/Texas Panhandles, depth 8,600 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 47 | Granite Wash, Anadarko Basin | Anadarko Basin, Texas Panhandle, depth 13,500 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 48 | Granite, Atoka, and Cherokee Washes, Anadarko Basin | Anadarko Basin, Texas/Oklahoma Panhandles, depth 13,500 ft. vertical with horizontal lateral | xx% | $xx,xxx | $xx,xxx | |
| 49 | Bend Shale, Palo Duro Basin | Palo Duro Basin, Texas Panhandle, total depth 9,000 ft. including lateral | xx% | $xx,xxx | $xx,xxx | |
| 50 | Caddo Lime, Midland Basin | Eastern Shelf of Midland Basin, west Texas, depth 6,300 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 51 | Serrat Sand/Dog Bend Lime (Upper Strawn) | Midland Basin, west Texas, depth 3,000 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 52 | Fusselman/Strawn, Permian Basin | Permian Basin, west Texas, depth 11,500 vertical | xx% | $xx,xxx | $xx,xxx | |
| 53 | Devonian (Thirtyone Chert), Permian Basin | Permian Basin, west Texas, depth 12,000 vertical | xx% | $xx,xxx | $xx,xxx | |
| 54 | Lower Spraberry/Jo Mill Sand/Dean Sand, Permian Basin | West Texas, depth 7,000 vertical with horizontal lateral | xx% | $xx,xxx | $xx,xxx | |
| 55 | Yates, Queen, San Andres, Clear Fork Fms., Permian Basin | West Texas, southeast New Mexico depth 7,800 vertical, field step-out well | xx% | $xx,xxx | $xx,xxx | |
| 56 | Morrow Sandstone, southeast NM, horizontal | Permian Basin, Southeast New Mexico depth 7,800 ft. vertical, with horizontal lateral | xx% | $xx,xxx | $xx,xxx | |
| 57 | Morrow Sandstone, southeast NM, horizontal, deep | Permian Basin, Southeast New Mexico, field stepout well, depth 10,600 vertical, with horizontal lateral | xx% | $xx,xxx | $xx,xxx | |
| 58 | Spraberry Trend, Permian Basin | Permian Basin, west Texas, depth 11,000 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 59 | Coalbed methane, Fruitland Formation, San Juan Basin | San Juan Basin, northwestern New Mexico, depth 3,200 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 60 | Trinidad/Vermejo Formation Coalbed Methane | Raton Basin, south-central Colorado, depth 2,000 vertical | xx% | $xx,xxx | $xx,xxx | |
| 61 | Hermosa Group (clastics), Paradox Basin | Paradox Basin, southeastern Utah, depth 9,800 ft. vertical with lateral, 3-D seismic delineated structure, wildcat | xx% | $xx,xxx | $xx,xxx | |
| 62 | Niobrara Formation (fractured chalk) | Eastern Colorado, depth 2,000 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 63 | Mesaverde Group, Piceance Basin | Piceance Basin, western Colorado, depth 7,000 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 64 | Mesaverde Group, Piceance Basin, deep | Piceance Basin, western Colorado, depth 11,200 vertical | xx% | $xx,xxx | $xx,xxx | |
| 65 | Blackhawk Formation (Spring Canyon Member), Uinta Basin | Uinta Basin, northeastern Utah, depth 12,800 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 66 | Mesaverde Formation Coalbed Methane, sw WY | Washakie Basin, southwestern Wyoming, depth 4,500 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 67 | Lance Formation, Green River Basin | Northern Green River Basin, Wyoming, depth 14,000 ft. vertical with directional leg | xx% | $xx,xxx | $xx,xxx | |
| 68 | Mowry shale, Powder River Basin | Powder River Basin, Wyoming, depth 7,500 ft. with horizontal lateral | xx% | $xx,xxx | $xx,xxx | |
| 69 | Coabed methane, Powder River Basin | Powder River Basin, Wyoming, Wyodak or Big George, depth 1,200 ft. vertical | xx% | $xx,xxx | $xx,xxx | |
| 70 | Middle Member of Bakken Formation, Williston Basin | Williston Basin, North Dakota, depth 10,000 ft. vertical with two opposing 4,500-ft. laterals | xx% | $xx,xxx | $xx,xxx | |
The NPVs and IRRs of all of the example wells are summarized together in graphs, providing a ranking of well economics in the 70 oil and gas plays. This ranking is a snapshot of which plays are likely to provide high investment returns, and which plays are likely to be less profitable than an alternative investment, such as a stock mutual fund. Graphs also rank well economics by type of play ( shale gas, conventional gas, conventional oil, etc.).
