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  Leaving the Seminar  Hostile Areas  Subsidies  Joint Ventures  Administrator  Drilling Contractor  Rig Move Cost  Depletion

  Expiry of Rights  JV Leader  JV Drilling Decision    Posting Land    Waiving Extension Fees 

Depletion

The first wells in an oil pool have a lower decline rate than the later wells. Below is the decline schedule for OilFinancier.

 

Wildcat

Well

Decline Rate

 (% per OF day)

One Adjacent Producer

Decline Rate

 (% per OF day)

 

Two Adjacent Producers

Decline Rate

 (% per OF day)

 

Three Adjacent Producers

Decline Rate

 (% per OF day)

 

Four Adjacent Producers

Decline Rate

 (% per OF day)

 
Shallow

2.0

2.5

3.0

3.5

4.0
Intermediate

0.4

0.6

0.8

x

x
Deep

1.2

1.5

1.8

2.1

2.4

Notes: (1) "x" indicates a geologically impossible situation. (2) Diagonal producing wells, dry adjacent, and producing wells adjacent at different depths have no effect on the depletion rate.

 

Stepout Strategy

When an oilfield is first discovered, don't sit too long on your oil rights near this discovery. If other financiers drill before you, you will get less―and get it later.

Remember time is money―especially in OilFinancier!   

 

 

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