Oil & Gas Company Life Cycle
- Acquire seismic, surface and subsurface data (well logs, cores and tests) in area of interest.
- Generate prospect idea.
- Acquire leases through purchase or farm-in arrangement.
- Estimate drilling and completion costs to test prospect.
- Predict expected volume of reserves, likely production rates and operating costs.
- Run a model of economics to determine the rate of return, cash flow and expected value generated by the sale of the oil and gas if the prospect
- is successful.
- Assess stratigraphic and structural risks and determine if the expected returns are sufficient to justify the capital expenditures.
- Apply for federal and/or state drilling permits.
- Contract drilling rig, mud-logger, cementing and well logging services.
- Prepare location and move in rig.
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