Venture economics of condensate gas field development

Development of condensate gas fields requires an understanding of economics and engineering. Prices of oil and gas play a very important role in the economic recovery of any reservoir. The heuristics suggest that the probability of finding oil fields decreases while that of gas fields increases. This research integrates a venture economics model with a reservoir production model for the evaluation of condensate gas fields. The developed model consists of: (1) a venture economics model for the field based on the Monte Carlo Method using Capital Asset Pricing Model incorporated with the certainty equivalent concept; (2) risk-sharing risk of the prospect based on its probability and (3) a methodology to estimate interwell rock and fluid properties in order to guide management for better investment decisions by minimizing risk and uncertainty. The research presents an improved methodology for the evaluation and optimized development of often neglected reservoirs. In the past, most simulation studies have emphasized optimization of engineering parameters. Lower energy prices have made it imperative that optimization should be based on both economic and engineering parameters. This research may provide industry with a vital link between reservoir simulation and economic evaluation, specifically for condensate gas field development.