Texas Tech – Introduction to Economic Modeling in PHDWinI. Importing Production a. Importing from Data Providers (IHS/Drilling Info/ Lasser) b. Importing CSV Files from Excel II. Projecting a PDP Case a. Inserting Projection Segments b. Inputting ARPs data c. Drag and Drop d. Using Auto-Fits III. Building a Prospect Case a. Creating a new case b. Basic Economic Requirements i. Entering Prices ii. Entering Expenses iii. Entering Ownership Information iv. Entering Investments c. Projecting a Prospect IV. Reporting a. Running a basic report b. Sorting Cases to Create Summaries and Totals Importing From Data Providers There are many resources that provide historical production data to engineers. Some of the more popular sources are: IHS Energy, Lasser, and Drilling Info. These three providers allow users to search for wells, and then download the history for one or more wells at a time. Getting that historical data into PHDWin for use in economic calculations and forecasting is a fairly simple process. Once the user has downloaded the data from the chosen source, they will need to open PHDWin, and the database into which they want to import the data. (Often times a new project file is created for this.) Then follow the steps below: 1. Go to Files -> Import Data Create New Cases. 2. Select the Import option button at the top of this window. 3. Click the […] browse button to open the browse window. 4. Locate the downloaded file on your system. * 5. Click Okay to return to the Import window. 6. Click Finish to begin the import. *(note from Marshall…I have put a drilling Info file on the class folder you can import… it is the “phdwin production import example.dri” file) Open the file in Excel 2. There may be occasions in which you need to import production from another program. By saving as a CSV. such as Microsoft Excel. taxes and escalations. but extreme caution needs to be taken to ensure that all of the correct data formats are being used to endure that the data is brought into PHDWin correctly. the user has several optional fields that allow them to apply basic economic parameters to the case. Importing CSV Files From Excel While importing from data providers is a quick and easy way of getting historical production. To save an Excel File as a CSV: 1. and before clicking finish to import the file. For instance. or text based. and even the option to have PHDWin apply a projection curve to the incoming data. This is why it is strongly recommended that the user save the Excel file as a CSV (Comma Separated) file before performing the import. an economic scenario (a predefined group of prices. expenses. Go to Files – Save As… 3. and thus the need for data types is eliminated. that type of data is not always available to you.After selecting the file. the file becomes ASCII. Choose CSV (Comma Sep) from the “Save As Type” drop down menu located at the bottom of the save window. . It is possible to import directly from Excel.). the user can apply an initial working interest and lease net revenue interest. Constraints for the layout of the CSV file 1. Column A must contain a unique identifier (i. You may then fill out the remaining data fields with options such as default country. default working and revenue interests etc. 1. those will be honored above anything set here in this wizard. Select the Import radio button at the top of the window. 3.e. Economic Scenario. Click the Next button to continue to the Custom Import Window. if ownership information exists. Click the […] button beneath the Import File section to browse for the file to be imported. 2. . open the project in PHDWin in which the data is to be imported.In order to import a CSV file there are a few rules that must be followed in the layout of the CSV file itself. API number) 3. Go to Files | Import Data or Create New Cases. 2. The data must be contiguous (no skipped columns or rows) Once the CSV has been created. and is mapped from the incoming data file. In other words. Remember that these settings will be defaults. To import the CSV file: Selecting the Import File The beginning of the import process is similar to importing from a data source file. and will not affect the data that is being brought in if there is conflict. 4. 5. Row 1 must contain header information (titles). Layout Section The first thing we see at the top of this window is the Layout section. or similar data sources are easier and faster to perform. and modify import templates. and can seem a bit daunting at first. create. For instance. there is no need to have to map those data fields every time you do an import. if you are going to be importing data on a regular basis from a spreadsheet generated from an accounting system. A layout gives the user the ability to create and store mappings so that future imports from the same. save it as a layout. This section is used to choose. The New button allows you to create a new custom layout from scratch. Delete deletes the selected layout from the system. For instance. if you choose an Access file (. This window has many options and selections. and that accounting system exports into a consistent format. and select that layout whenever you are performing an import of that type. or “layouts”. so lets go through each section and talk about the features and their purpose. Map them once.Custom Import Window The Custom Import Window is used to “map” the data fields from the incoming file into one of the available fields in PHDWin. . and any custom Access import layouts you have stored.mdb) then the layouts available in the drop down will be for ARIES Windows. The available layouts that get listed in the drop down will reflect the basic data file type you are trying to import. Now that the data fields are mapped. Once a new layout has been created and named. you must then define the type of file that is being imported. This is useful for small variations in import files so you do not have to completely recreate a mapping layout. The PHDWin data fields are filtered by category (found in the drop down at the top right corner of the window). Each field in the CSV must be “Mapped” or assigned a field in the PHDWin database. the user locates the desired PHDWin data field. To map the fields. you would select the CSV option. the user may click Finish to begin the import. . Once all the fields are mapped. Mapping Data Fields Mapping data fields is the process by which you tell PHDWin where to put the data that comes in from the CSV File. In this case. The right side contains all of the available data fields in PHDWin. click OK to return to the custom import window. The left side of this window is a look into the CSV File. and drags it to the matching field in the CSV file. Once this is done the Master Table and Data Fields buttons will become active. so the next step is to click the Data Fields button to create the import Map. There is no need to hit the Master Table button for a CSV import.Copy copies the selected import layout and saves it under a new name. A different forecast toolbar appears over the graphic toolbar that performs the functions of the forecast mode. There are 7 different graphs available within PHDWin . This will open the graphical display of the case. Graph Projections Window Forecast Mode . all are customizable – there are 4 rate-time graphs and 3 rate-cum graphs (shown as 7 different tabs). After each value is entered click the Tab key to move to the next field. Data entered in a field will not be posted to the program until after the Tab key has been depressed or another field has been selected with a left mouse click. Press Enter or the Accept Changes button to prompt PHDWin to calculate the remainder of the values including reserves.Projecting a PDP Case Graphs can be displayed for the current case by selecting Graphs Display from the toolbar as shown below. Enter Forecast mode by clicking the toggle at the right end of the graphic toolbar. 2) Select the forecast button on the the toolbar to enter the graphical forecast mode. Drag and drop decline adjustment is supported directly on the graph in Forecast mode.How to Decline parameters can be directly entered for up to 10 curve segments for each product. New values can be entered directly into the Projection window. The Graphical presentation will change to allow direct adjustment of decline curves. Direct entry of decline values is supported on the ARPS’ Projection window seen above. Edit Production Decline Curves To edit decline curves: 1) Select Graphs | Display from the PHDWin™ main menu and click on a tab to select a graph format.Direct Entry . Fields can also be selected by left clicking on the field of interest. . Decline curves can be edited in one of two ways. Edit Decline Curves . The middle handle is positioned at the midpoint.Delete Curve Segment Button The use of this button will delete the curve segment that is selected. Drag and drop these pivot handles to change start rate.Drag and Drop Adjustment Figure 1: Graph Projection Handles Projection forecast editing may be done directly on the graph itself. While in the forecast mode. one on each end and one in the middle. The left handle (Red box) will adjust that curve segments Initial Flow Rate (Qi) and that segments Start Date. ending rate and decline. the active (editable) product's forecast is shown with three small pivot handles. The selected curve segment is that active curve segment presented in the graph window in forecast mode that has its three handles presented. . The last handle is presented on the curve at the end date of that segment. Edit Decline Curves . The End Date and End Flow Rate (Qf) will remain unchanged while all other values including decline rate will be adjusted. The first handle will be at the start date on the curve. The right handle (Red box) will adjust that curve segments Final Flow Rate (Qf) and that segments End Date. The curve segments Start Date and Initial Flow Rate (Qi) will remain unchanged while all other values including decline rate are adjusted. A curve's handles are presented as three solid boxes along the curve segment. Start Date. however. End Flow Rate (Qf). All values are real time. Each product can have up to ten curve segments. If you need to adjust a projection for a curve not listed. There are three types of auto-fits found in PHDWin: Blind Auto Fit (Ctrl + A) – Auto Fit projects a decline curve for the current product using ARPs Projection techniques. This gives the user the most control over the curve that is created. Auto-Fitting Projections Auto-Fitting production history is a great way to start a projection. PHDWin will cull the data outside the polygon. decline rate. simply click the add segment button and choose to add the segment before or after the previous segment. Cull Data for Auto Fit . and End Date. all values are updated on the fly. The curve duration. Right click executes the fit. Change between products in forecast mode by clicking on that product’s values on the y- axis (your cursor turns into a hand symbol) OR by selecting it from the drop down list on the toolbar as seen below: To add segments to a projection. and fit what's inside. simply add that product to the graph.The center handle (Red box) will adjust that curve segments Initial Flow Rate (Qi). . because they have control over what historical data points are being used to create the curve. Multi-point Fit – Fits the curve projection for specified data points. This option allows PHDWin to determine what historical data to use to project the curve. This option does not use historical data points. Right click to execute the fit after creating the polygon. All oil and gas decline projections are defined by Arps equations by default. As you move the curves. and b-factor will remain constant. Only products on the graph are available for presentation. The user has little control over the results of the auto-fit.Draw a polygon around the historical data points that the curve projection will be fitted to by clicking to form the corners of the polygon. the resulting curve may be manipulated by drag and drop. Once the auto-fit has been performed. This option gives the user more control than the Blind Auto-Fit. or data entry to get the final desired result. can be used to get very inaccurate results if used incorrectly. but rather uses the exact points that the user clicks. The last price segment should always last until ECL.Building a Prospect Case Let’s discuss the process of building a new prospective case from scratch. The minimum requirements for any case to run economics are: 1. Whenever a case is built from scratch. Go to Editor – Cases 2.) a. 5. allowing you to edit the other options. Fill in the price to be used. Select the Prices Tab 3. A production curve (projection) 2. and the duration for that price segment (used for pricing strips that change over time. The default ownership may be entered here. Expand the Base Prices node 4. 7. While some of the required elements may be entered during the creation of the case. To edit Prices: 1. and will be set as the active case. Expenses (required to calculate an Economic Limit) 4. 5. it is useful to know how to edit all of those items after the case has been created. 8. . Click Finish. To create a new case: 1. 9. Fill in the Case Name and other header information. Expand the Base Costs node 4. Go to Editor – Cases 2. Click Next. Select the Expenses Tab 3. Ownership (required to calculate Net volumes and economics) The first step is to create the case itself. Note: if the price will be changing over time. Repeat the process for all products. Click Next. Double click the expense category you wish you edit the value of. To Edit Expenses: 1. Select the Single Case option in the top left corner. click the Insert button at the bottom to create the next pricing segment for the selected product. Select the Standard case option 4. Go to Files – Import Data Create Cases 2. Prices 3. 3. Projections may be entered here if the numeric data is known. and double click that product. 6. Select the product you wish you edit the price for. 6. The new case will now be accessible through the Case List (ctrl + L). there will be a few requirements that must be in place before an economic report may be run on the case. Reporting Once the data has been entered on the case. . In other words. 4.75. if the user changes the WI to . Fill in the expense to be used. 675 and the Lease NRI is . $/month. . minus the land owner. To Edit Ownership: 1. Repeat the process for all categories as necessary.) a. Highlight the report format to be run in the top section. Go to Reports – Select and Run 2. Revenue Interest is the owner’s share of the revenues on the case. Go to Editor – Cases 2. click the Insert button at the bottom to create the next expense segment for the selected category. Lease NRI is the revenue interest at 100% working interest. Note: if the expenses will be changing over time. this number usually represents the sum of all revenue interests on the case. 6. The last expense segment should always last until ECL. Fixed cost does not. This number is used to calculate the economic limit on the case. a report can be run to see the results. but does not affect the net numbers reported. In other words. By definition the following should be true (assuming no overrides): RI = WI x LNRI The calculator icons on the side of the edit ownership window are used to calculate values based on the equation shown above. then clicking the calculator next to RI would change it’s value to . Select the case(s) the report is to be run on in the bottom section. and the duration for that expense segment (used for expense strips that change over time. Note: well cost will be multiplied by the case’s well count. Select the Ownership Tab 3. 3.50625 to balance the equation. To Run a Report: 1. 5. Click run. and a projection has been made. . Working Interest is the owner’s share of the expenses on the case. There are three numbers that are tracked in association with ownership in PHDWin. Double click the ownership line to edit the values. $/month/well. Case Selection . The other option is to select a custom group of cases. When creating a new sort order. They may want summaries to be generated by reserve class and category. or field. This will open the Case List. The user may then select the cases to be run by dragging them from the Case List into the Select and Run window. First. Summary report pages are controlled by the sort options in the Case List. Read the steps below for defining the Sort. To do this. . begin by typing a Sort Order Name into the top field. click Select at the bottom of this window. often times the user desires a more comprehensive breakdown of the information. Summaries and Totals By default PHDWin will always produce a Grand Total page in the report whenever more than one case is run. or operator or any number of other options. Select the button from the case list window. Sorts. or Current Case.There are two basic ways to select which case(s) are to be run. the user has two predefined options found in the drop down menu located about half way down the Select and Run window. However. Use the Case List to Sort Cases Click the button on PHDWin™ Navigator portion of the toolbar to activate the Case List window. The options are All Cases. . When the Sorting has been defined. Inside the Save window. The Group column will specify if that sort criterion will create a break in the case list. designates that a summary will be generated at that break. click the Save button to save as the Sort Order Name. Figure 2: Sort Window Sorting is defined by dragging the selected criteria from the Available Fields column to the first available line underneath Sort Fields. designates a Subtotal will be generated at that break. .tps file. After the sort order is saved. but will not affect the order that the cases are reported. . click OK back inside the Sort Order window to activate the list with the order. Top specifies that the Summary will be located before the individual case reports. the sort criteria will be able to be used in other databases. A large Sigma symbol inside the list. Subtotals can be created for each sort criteria. Once again. Double click the field to get a drop down box that will allow changing the selection. A green check mark underneath the Sum column specifies that a Summary will be generated for that sort field/break. and bottom specifies that the Summary will be located after the individual case reports. A green check mark designates this being turned on for that sort field. A small Sigma symbol. A subtoal will generate a summary page in the report. PHDWin can sort by up to ten different criteria. The Sort column defines if the cases are sorted in an ascending or descending order. the user can store this sort order to a template in the Scheme. by highlighting that particular line. the drag and drop the selected subtotal criteria to the lower portion of the window. for instance. If saved as a template. to generate summary pages for each operator while sorted by Reserve Class and Category. A Subtotal can be setup to be generated within each sort group. and the location is defined as the Top or Bottom underneath the Place column. This allows you.