Acquisition and Divestiture Oil and Gas

ATCE Presentation Preview: Trusting A 10 Minute A&D Evaluation

Author: Ryan Mohrman, Solutions Architect

ATCE 2017 offers an opportunity for worldwide oil and gas professionals to keep up with the latest technologies, industry best practices, and new product launches. ATCE delivers groundbreaking papers and special technical events designed to accelerate the application of innovations in every technical discipline. At the upcoming conference, 3esi-Enersight will present a number of presentations, both SPE papers and technical presentations in our booth, including: “Trusting a 10-Minute A&D Evaluation.”

The demand placed on evaluation engineers in this low price environment is continuously growing as managers find it more difficult to feel confident in assets that are hovering near or below the breakeven price. To alleviate this pressure, Acquisition & Divestiture (A&D) work can follow a quick screening process that can cut down the time needed to review an asset that won’t trigger a purchase decision.

The idea behind a 10-Minute A&D evaluation is to increase the amount of engineering you or your team can do in a day, rather than data mining. If you can maximize the efficiency in your A&D evaluations, you can get away from being an accountant and get back to being an engineer.

So, what do you need to do to make a 10-minute A&D evaluation useful?

The most basic step is to identify the right solution to speed up forecasting. In 2017, E&P companies are no longer forced to be reliant on Excel to generate their forecasts. Today, many companies are relying on enterprise systems for forecasting because of the key benefits they bring. Trust is a key component to making this switch, so it is important to feel confident in your vendor.

  • Run the forecasts several times to get a first-hand view of how the software handles multiple iterations.
  • Ensure that security is enhanced around calculations and data.

Next, you need to define a repeatable workflow, so you can compare apples to apples.

Here are 6 tips you can use to ensure you gain maximum value out of a 10-Minute A&D evaluation:

  1. Bulk best-fit the wells for an initial pass. Let the computer run the forecast for your bulk import, so you can use your expertise to audit the computer.
  2. Run economics with multiple price decks or perform a break-even analysis in one program.
  3. Sort, filter, or bucket data into groups and build corresponding Type Wells. Then, use that information to prepare analog forecasts.
  4. Work out a quick drilling schedule for the asset.
  5. Review your economics inline. Make sure you can run different scenarios in one program and compare them.
  6. When you embark on that initial engineering work and you decide more time is needed looking at the data to take it to the next level, make sure you are can do it in the same system as opposed to having to “start over.” Avoid the re-work; your time is too valuable for that.

Finally, I highly recommend letting the software program handle the auto-forecasting. I know, I know, the word “auto-forecasting” comes with negative connotations associated with it in some circles,  so perhaps think of it as “assisted forecasting.” Let the software do what it is designed to do, and save your time and energy for the required expert analysis.

Is Your Technology Up to the 10-Minute Challenge?

A ten-minute A&D evaluation is not intended to be THE answer. It’s a workflow you can practice to screen projects, allowing you or your team to operate more efficiently as engineers.

I encourage you to ask yourself if your current process and system allows you to:

  • Assist your forecasting to bulk screen wells?
  • Compare multiple scenarios simultaneously?
  • Move cleanly between screening and full-blown economic runs?

If the answer is no, come see us at ATCE 2017 in booth #2745 where I will deliver the full presentation, “Trusting a 10-Minute A&D Evaluation” on both Monday (1:00 PM) and Tuesday (1:00 PM) during the conference.

Technical Presentations

In addition to this talk, our experts will present a variety of technical presentations covering everything from best practices for building more accurate type curves to a look at how our client, Murphy Oil, is working towards closing the loop with management to achieve “budget utopia.”

View our complete booth presentation schedule, and learn about our SPE paper presentations at ATCE 2017.

Contact us if would like to request the complete guide on what to expect from a 10-Minute A&D Evaluation.