ERC calculator petroleum and gas - Module 7 transcript

Watch the video Petroleum and gas ERC calculator training –  Module 7 – Wells to learn about entering data into the Wells sheet.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 7. This module will work through entering data into the Wells input sheet.

The Wells input sheet allows the user to list out wells or groups of wells and enter the disturbance area, improving consistency with the spatial data. The sheet calculates the cost for decommissioning, dismantling and demolition of wells, and the land rehabilitation associated with the pads, separately. The user enters the area of the well pad or group of well pads separately from the number of well heads.

The quantity entry to the sheet is straightforward. As is for all the sheets the first column is for the map ID, followed by the name of the well or group of wells. The user then selects the type of well or wells from the drop-down menu. The options for well types in this drop-down list is the same as that in the Main sheet, spanning the various resource types and stages of wells. The user then enters the number of wellheads in the line category, followed by the total disturbance area of the pad into which those wells are drilled. The final selection determines the revegetation cost.

The drop-down menu is slightly different to the other sheets in that the selections are seed or no seed. If no seed is selected the user is communicating that the well pad is in a desert environment whereby vegetation did not previously exist. If seed is selected, an average of the cost of pasture and native is used to calculate the revegetation cost. The columns to the right of the user entries show the quantities entered for each category, and the total cost is found at the top of the table. The first table shows the decommissioning, dismantling, and demolition cost for each category and the next two tables show the cost for land rehabilitation when seed is required and where seed is not required.

One thing to be aware of is that the land rehabilitation rate is very high for well categories, whereas the assumed disturbance area used to calculate the unit rate is very small. For example, the area assumed for a plugged and abandoned well is very small and therefore the per hectare rate is disproportionately large. Consequently, if in the unusual circumstance a plugged and abandoned well has a very large disturbance associated with it, the overall cost may not be an accurate representation of the true cost. In this case the user is encouraged to use the Main sheet for these entries.

The totals for each category are summed to create the total for the sheet, and this total is fed through to the relevant row in the Main sheet.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator. See you in the next module.

Watch the video: Module 7 – Wells.