1. What reserve category would you give a well to be e of recovering the drilled
ID: 1102429 • Letter: 1
Question
1. What reserve category would you give a well to be e of recovering the drilled that has a 10% to 90% chanc estimated reserves? a. Proved Producing b. Proved Plus Probable c. Proved Undeveloped d. Probable e. Possible 2. At what point does an economic evaluation truncate annual cash flow generation? a. Upon reaching payout b. Net Present Value goal is achieved c. Costs exceed revenue d. Not until the estimated reserves have been recovered e. None of the above 3. Which cash flow model is used for reserve value estimation for an oilwell? a. Tax Model b. Cash Flow Model c. Financial Model d. Discount Model e. Any of the above 4. What is the term used to describe a capital cost that could be resold once it is not needed any longer? a. Fixed capital b. Variable cost c. Intangible d. Tangible e. DCFROR 5. What impact on price does a decrease in supply with a steady demand have? a. Price inflation b. Stabilize prices c. No effect d. Increase demand e. All of the above a. Gross revenue, mmcf, operating costs b. 3.6Explanation / Answer
1. e. Possible
Explanation: Possible reserves refer to the unproved reserves which are considered by geological and engineering studies to be recoverable than probable reserves. Under probabilistic methods, there should be at least 10% probability of recovering the estimated reserves.
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