The inclusion of models of production of oil with time and of selling price, costs and their temporal variations, all influence the timing decision of when to undertake a recompletion to another horizon relative to potential residual gains from a currently producing horizon. In this paper we show how models of such effects can be incorporated into the evaluation of whether, and when to undertake recompletion. Three simple numerical illustrations are given to demonstrate the influence of different choices of production models on the assessment of the best time to undertake a recompletion job.
References
1.
LercheI., and NoethS., 2001a, Sidetrack and Recompletion Risks in Oil Fields I. Recompletion Decisions based on Estimated Net Present Value.
2.
LercheI., and NoethS., 2001b, Sidetrack and Recompletion Risks in Oil Fields II. Economics of Sidetrack Development.
