Estimate the economic rate of return, Finance Basics

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Production data has been fit to a Fetkovich type curve. Given the following information, answer the questions:

Date of first production plotted for the Fetkovich type curve match is 1/1/95.

Value for Di from Fetkovich type curve match is 0.35 per year.

Value for Qi from Fetkovich type curve match is 1,500 BOPD.

Cumulative production through 12/2001 is 250,000 BO.

Estimated value of "b" is 0.30 from the Fetkovich type curve.

  • If the economic limit is 20 BOPD, estimate the ERR.
  • When will the economic limit be reached
  • What is the EUR for this well?

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