Page 145 - Well Logging and Formation Evaluation

Equity Determinations 135

you need to propose the model, supported by at least part of the data, that
optimizes your position. If a two-well model is being used to estimate the
effect on equity, care needs to be taken that this is indeed representative.
For complex reservoir geometries where additional accumulations open
up as the HWC is deepened, it may be necessary to go to a full mapping
package to properly assess the impact on equity of moving the contact
one way or another.

Exercise 9.1. Optimizing Equity

Consider the following scenario:
Well test1 is on your side of a block boundary with well test2, which
is part of the same accumulation, on the other side of the boundary and
controlled by another company. You have agreed to share data with the
other company and to pursue a common petrophysical model for evalu-
ating the accumulation. The test2 well has no core data.
You have agreed to give a technical presentation to the other company
with your recommended model for the evaluating the field. This model,
if accepted by the other company, may be used as the basis for an equity
determination.
Perform an evaluation of the test2 well. Fully detail a technical defen-
sible model for the evaluation of both wells which optimizes your equity
position.
The log data from the test2 well is in Appendix 3. Assume that the data
are true vertical relative to mean sea level.