1.

In this exercise you are required to evaluate two wells, well A and well B of know
production rate to recommend a potential investor, which one of these two well would
be profitable. Your recommendation should be based on the future expected
production. It is known that the economic limit of well A is 10 Mscf/day while that of
well B is 15 MScf/day.
a. Determine which decline rate model fits each well.

b. Calculate the decline rate and initial rate of each well.

c. Based on the know abandonment rates, recommend which one of the two wells
would be profitable.

d. Comment on unaccounted investment risks.

**Softcopy of the production data below can be downloaded from elearning assignment file.

Time, Week
3
6
9
12
15
18
21
24
27
30
33
36
39
42
45
48
51
54

Well A
MScf/Day
413.3
392.8
375.9
371.3
377.5
367.8
356.8
349.0
361.7
349.1
341.9
350.1
333.6
291.4
338.2
329.1
322.5
327.1

Well B
MScf/Day
300.6
299.0
297.5
296.0
294.5
293.0
291.5
290.0
288.6
287.1
285.6
284.2
282.7
281.3
279.9
278.4
277.0
275.6

57
60
66
72
78
84
90
96
102
117
120
132
141
150
162
171
180
198
207
219
228
231
240
258
270
288
291
300
340
360
400
420
480
500
548

310.9
316.6
305.6
298.7
291.6
290.8
278.0
284.8
276.9
259.9
254.8
249.4
236.4
237.4
230.1
224.2
219.4
199.9
202.1
196.4
189.8
190.5
183.8
176.4
170.3
143.7
156.1
154.6
139.6
138.1
123.4
120.5
105.1
98.5
91.1

274.2
272.8
270.0
267.3
264.6
261.9
259.3
256.6
254.0
247.6
246.4
241.4
237.7
234.1
229.4
225.9
222.5
215.8
212.5
208.2
205.0
204.0
200.9
194.8
190.9
185.2
184.2
181.4
169.5
163.8
153.1
147.9
133.6
129.1
119.0