PETRO 4300 S 11 CLASS 1

PETRO 4300 S 11 CLASS 1 - PETRO 4300 PROPERTY (ASSET)...

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PETRO 4300 PROPERTY (ASSET) EVALUATION LECTURE 1
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INTRODUCTION
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WHY WE EVALUATE PROPERTIES OR BETTER . . EVALUATE ASSETS BOSS ASKS TO DO IT YOU ARE IN BUSINESS FOR YOURSELF AND WANT TO EITHER BUY SALE OR INVEST A THIRD PARTY WANTS TO BUY, SALE OR INVEST AND WANTS TO KNOW IF PARTICULAR ASSET IS A GOOD INVESTMENT YOUR ARE RESPONSIBLE FOR OPERATING A PROPERTY/ASSET AND ARE INTERESTED IN IMPACT OF CHANGES IN PRODUCTION , EXPENSES , OPERATING PRACTICES
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WHAT IS AN ASSET? PRODUCING PROPERTY SINGLE WELL LEASE ( FEW WELLS ) UNIT ( MANY WELLS, 10’S, 100’S, 1000’S ) DIFFERENT ZONE WITHIN A WELLBORE WELL CONFORMANCE CLEAN /STIMULATE AN EXISTING PAY INTERVAL UNDEVELOPED ACREAGE EXPLORATION PLAY OFFSET AREAS SIMILAR BASINS INFILL POTENTIAL A DIFFERENT RECOVERY METHOD/OPERATION PRIMARY TO WATER FLOOD WATER FLOOD TO CO2 FLOOD UPGRADE ON FACILITIES TO IMPROVE RECOVERY BUILD A NEW COLLECTION SYSTEM REBUILD/UPDATE AN INJECTION STATION CHANGE / MODIFY OPERATING SYSTEM FLOWING WELL TO ROD PUMP ROD PUMP TO SUBMERSIBLE PUMP
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WHAT ARE WE REALLY INTERESTED IN WHEN TRYING TO EVALUATE AN ASSET???? A) ABILITY TO GENERATE REVENUE B) EXPENSES RELATED TO THE OPERATION OF THE ASSET C) TIME FRAME IN WHICH (A) & (B) TAKES PLACE
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10 100 1000 10000 01/01/1972 12/31/1973 12/31/1975 12/30/1977 12/30/1979 12/29/1981 12/29/1983 12/28/1985 12/28/1987 12/27/1989 12/27/1991 12/26/1993 12/26/1995 12/25/1997 12/25/1999 12/24/2001 12/24/2003 12/23/2005 12/23/2007 12/22/2009 12/22/2011 12/21/2013 12/21/2015 12/20/2017 12/20/2019 12/19/2021 12/19/2023 12/18/2025 12/18/2027 12/17/2029 12/17/2031 Series1 Series2 O I L R A T E S T B O P D
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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 Date DAILYPRD.CO2 1932-351G G A S R A T E M M S C F P D
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WHAT DOES IT TAKE TO EVALUATE AN ASSET UNDERSTANDING WHY YOU ARE EVALUATING UNDERSTANDING OF THE ASSET TO BE EVALUATED – GEOLOGY LOG ANALYSIS – ANALOGIES DECLINE ANALYSIS PRODUCTION FORECAST METHODS RESERVOIR PRINCIPLES PRODUCTION PRINCIPLES EXPENSE ANALYSIS/FORECAST FINANCIAL KNOWLEDGE – CASH FLOW – INVESTMENT INDICATORS RISK FACTOR POSSIBLE OUTCOMES
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WHO DO YOU INTERACT WITH PROMOTERS LAND MAN ACCOUNTANTS GEOSCIENTISTS ( GEOLOGIST – PETROPHYSICIST ) OPERATION STAFF CONSULTANTS OTHER PETROLEUM ENGINEERS SERVICE COMPANIES LOCAL/STATE/FEDERAL ENTITIES BANKERS/FINANCIAL INSTITUTIONS LAWYERS UPPER MANAGEMENT
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WHAT DO YOU WANT TO DO WITH THE EVALUATION PROMOTE BUY, IMPROVE , SALE (FLIP) BUY, HOLD, TRADE BUY, DEVELOP PRESENT AS A RECOMMENDATION TO UPPER MANAGEMENT
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LAND DESCRIPTION
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LAND OWNERSHIP THE AMERICAN SYSTEM OF LAND OWNERSHIP IS PATTERNED AFTER THE ENGLISH SYSTEM OF FEE OWNERSHIP ACCORDING TO THIS OLD COMMON LAW, A PERSON OWNS HIS ENTIRE SURFACE ACREAGE AS WELL AS ALL THE LAND BENEATH THAT DOWN TO THE CORE OF THE EARTH SHORTCOMING OF INDISCRIMINANT SETTLEMENT WERE WELL KNOW TO THE FOUNDING FATHERS AND WHEN NEW TERRITORY OPENED UP IT WAS RECOMMENDED THAT ALL LANDS BE DIVIDED UP ACCORDING TO A RECTANGULAR SURVEY SYSTEM
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This note was uploaded on 07/12/2011 for the course PETR 4300 taught by Professor Watson during the Spring '11 term at Texas Tech.

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PETRO 4300 S 11 CLASS 1 - PETRO 4300 PROPERTY (ASSET)...

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