Course Definition:
Reserve estimation, decline analysis, petroleum property
evaluation including interest calculations, cost estimation and
tax evaluation. Overview investment decision analysis and
computer application in property evaluation..
Policy:
 Participation & Professionalism 5%
 Homeworks 10%
 Quizzes 5%
 Projects 30%
 Exams 50%
 Homework and projects are due at the time specified.
 Late homework or projects: 5% penalty for every class meeting.
 Attendance: Required.
Text Book:
Oil Property Evaluation
By: Thompson and Wright.
Books extensively used during the semester:
"Petroleum Evaluations and Economic Decisions," Mc Cray.
"Economic Evaluation and Investment Decision Methods,"
Stermole and Stermole.
This is the absolute minimum that I expect from each of my students.
This is the absolute minimum of professionalism without which we cannot get along well.
If you think you might not be able to live by these two simple rules, please come and see me ASAP.  Thank you.
 DO NOT come late to the class.
If you do, be prepared to PAY. (no,... not monetarily)
 DO NOT miss class.
If you do, you will lose 5 points from your FINAL GRADE for each unexcused absence.
University Social Justice Statement.
University Disability Policies

Syllabus:

Chapter ONE:

INTRODUCTION
 Investment Decision making
 Introduction to Probability
 Data Handling
 Introduction to Statistical Measures
 Range, Median, Mean, Standard Deviation and Variance
 Discrete Probability Distribution
 Continuous Probability Distribution

(Week  1)


Chapter TWO:

BASIC CONCEPTS OF OIL PROPERTY EVALUATION
 Profit, Revenue, and Periodicity
 Financial Models
 Cash Basis
 Modified Cash Basis
 Accrual Basis
 Time Value of Money
 Cash Flow Diagram
 Simple Interest
 Compounded interest
 Nominal and effective interest rates

(Weeks  2,3,4)


Chapter THREE:

INVESTMENT DECISION ANALYSIS
 Single Project
 Mutually Exclusive Projects
 Yardsticks
 Net Present Value
 Present Value Profit
 Discount Cash Flow Rate of Return

(Weeks 5,6)


Chapter FOUR:

RESERVE ESTIMATION
 Reserve Classification
 Methods of Calculating Reserve
 Analogy
 Volumetric
 Source of Data
 Isolated Wells
 Developed Field
 Material Balance
 History Matching
 Future Predictions
 Decline Curves
 Exponential Decline
 Decline Rates
 Cumulative Production
 Hyperbolic Decline
 Decline Rates
 Cumulative Production
 Reservoir Simulation
 Original Oil In Place
 Permeability & Skin Factor
 Shape Factor
 Recovery Factor

(Weeks 7,8)


Chapter FIVE:

DECLINE CURVE ANALYSIS
 Production Decline Curves
 Exponential Decline
 Nominal and Effective Decline Rates
 Cumulative Production
 Hyperbolic Decline
 Nominal and Effective Decline Rates
 Cumulative Production
 Harmonic Decline
 Theoretical Foundation of Decline Curves
 Assumptions
 Derivations
 Original Oil In Place
 Permeability and Skin Factor
 Shape Factor
 Recovery Factor
 Decline Rate
 Decline Curve Analysis

(Weeks 9,10,11)


Chapter SIX:

TYPE CURVES

(Weeks 12,13)


Chapter 7:

MONTE CARLO SIMULATION
 Introduction to Monte Carlo Simulation technique

(Weeks 14,15)

LECTURES
Chapter 1
Watch our Youtube video on how to implement Monte Carlo Simulation in Excel for the homework given in class
Watch it Here


Course TA:
Ms. Vida Gholami
Problem Sets:
Decline Curve Analysis Using MS. Excel Examples:
Type Curve Matching Using MS. Excel Examples:
Click here to download the SPE paper template. You should copy this file into the "Template"
directory in the Microsoft office directory in the "Program Files" directory. Then open the
Microsoft Word and then click on new, and then use the template.
Projects:
Click HERE to download the data file for Project #2.
Students Performance in the Past Years:
Individual Projects:
Bevin Vangilder: 

Brent Criser: 

Group Projects:
Group 1  project #2 

Group 2  project #2 

Group Projects:
Get Adobe FREE Reader HERE
