Evaluation of Economic Potential of the Delaware Basin

Situation: Evaluate a section of the Delaware Basin in terms of economic potential and develop an aerial map to determine sweet spots.

Task: Analyze production data and develop a NPV/acre heat map.

Action: Determined EUR’s and drainage areas through decline curve analysis to get NPV/acre. For wells where there was a lack of information, stochastic estimate using distributions was applied. Using this information from 72 wells, an aerial map was developed.

Result: Determined profitable acreage from the analysis. The results were validated by the drilling trend. Group received 2nd highest grade in the class out of 24 teams.

Shows a reciprocal rate vs cumulative oil production plot. The end of infinite acting linear flow is indicated by the blue triangle. ×

Cumulative gas production vs. cumulative oil production plot. Deviation from the constant GOR line indicates the reservoir has hit the bubble point. ×

Histogram distribution for drainage area. ×

Log normal fit of drainage area distribution. ×

Monte Carlo simulation for EUR values. P90, P50, and P10 values are shown. ×

Bid value map of the a play in the Delaware Basin developed from the stochastic analysis. Results suggest a “sweet spot” in the northeast region of the area. The physical drilling trend in the area agreed with our analysis!!! ×