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EPmag.com | June 2015 E &P companies need extreme capital efficiency to sur- vive and grow. Previous strategies of trial-and-error and traditional appraisal sequencing will not achieve this objective. In fact, they tend to oversimplify or ignore key operating and subsurface constraints. To optimize capital efficiency, a straightforward approach to quantitatively evaluate and manage multiple appraisal and development decisions under conditions of uncertainty is necessary. A methodology based on Halliburton’s patent-pend- ing process registered as “System and Methods for Determining Appraisal Locations in a Reservoir System” that considers these factors was implemented. It uses a comprehensive appraisal process to rank and then delin- eate the acreage based on a group of items like wells, blocks, asset areas, regions or country areas. The pur- pose is to establish priorities for implementing strategies in a range of time frames. It factors in both surface and subsurface uncertainties and can determine optimized appraisal locations within a few weeks. In 2011 this methodology was used for the appraisal of a North American unconventional exploratory play with great success. The operator had to quickly evaluate and make delineation decisions of an area with significant uncertainties from subsurface and surface parameters. The area contains more than 330 sections of 2.6 sq km (1 sq mile), each with different ownership, operator- ship, permitting obligations and mineral rights. The area also has complex landforms, difficult access, lim- ited infrastructure, major uncertainties in reservoir characterization and commercial uncertainties. The methodology is a front-end process, so the results of each stage are the building blocks of the subsequent stage. It follows a systematic way to determine value promise and associated risk to identify priorities. The process is divided in three stages, starting with a techni- cal assessment of the data available followed by a rank- ing and priority analysis and concluding with development strategies.
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