For every well event, the following are provided:
- Ultimate recoverable reserves per well - calculated by XI Technologies
- Remaining reserves per well - calculated by Canadian Discovery Ltd.
- Reserve life index (RLI) - calculated by Canadian Discovery Ltd.
Canadian Discovery has a partnership agreement with XI Technologies for well reserves data. XI Technologies utilizes a production decline approach:
- Utilizing the last 24 months of production for the analysis
- Only considering monthly production where the producing hours exceed 50% of the full month
- Using calendar day rates
- Performing exponential declines only and declining oil and gas separately
- Accepting only annual rates of decline greater than 2%
Once XI Technologies calculates exponential declines for all applicable wells, it determines averages for the various pools and zones. It will never assign an average decline to a pool or zone where only one good well (exponential decline) exists.
If a decline for a well is less than 2% or if the well has not been on production for more than one month, a substitute well will be used. Substitutions are determined from the exponentially declining wells. XI Technologies will not assign a decline to a well in an undefined pool. The sequence of substitutions is as follows:
If a good exponential decline on the primary product of a well is found– that decline will be substituted for the other product (i.e. OilSub, or GasSub)
- Assign the average decline for the pool (PoolSub)
- Assign the average decline for the zone within the strike area of the well (ZoneStrike)
- Assign the average decline for the zone within the region of the well (ZoneRegion)
- Assign the average decline for the zone within Western Canada (Zone)
- Assign a default decline of 12% (Default)
The remaining producing reserves for each well are then determined by extrapolating the production rates from the last 3 months down to an economic limit. Economic limits are 0.2 bbls for oil and 2 mcf for gas.
Canadian Discovery performs in-house calculations to derive remaining reserves per well and reserves life index (RLI).
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