| Deep drilling for oil and natural gas has received increased attention in the last few years due to high costs of imported petroleum fuels and lingering doubts about their availability in future years. Measuring the effects of uncertainties on the final outcome of a deep drilling exploration venture is a common necessity in the petroleum industry. To perform such measurements, a risk analysis model for multi-well deep drilling projects in volumetric gas reservoirs has been formulated and computerized. A distribution of basic economic indices can be developed by repeatedly solving the model using the selected input variables based on the geology of the prospect, the financial strength of the operating interest and the prevailing market conditions. The scope of the analysis starts with the exploration phase and ends when the field is abandoned at the economic limit. During each simulation of exploitation, many tests are performed to verify the economic feasibility of continuing capital expenditures. The model gives some idea of the expected monetary returns while the financial outlays are still minimum. |
