ESER Oil and gas well decline curve analysis simulator


Decline Curve Analysis

assumptions:

  • initial investment: $


  • purchase-price cash-flow-multiple: x
          (this is of the most-recent month's gas+oil production cash-flow payment)
          example: if cash-flow is $1/month and you paid $50, then the cash-flow-multiple is: 50x


  • first month's rate-of-return on investment (based on purchase-price cash-flow multiple): %2


  • yearly decline-rate of oil and gas wells: %
  • monthly decline-rate of oil and gas wells: %0.9488


  • monthly reinvestment rate: %
  • monthly management fee (% of each month's total cash flow): %


  • number of months to simulate: months


  • annual inflation rate: %


  • NOTE: this simulation assumes that the non-inflation-adjusted price of natural-gas is constant over time



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