APT and DecisionNodes partnership quantifies economic benefit of resource plays

Applied Petroleum Technology (APT) and decision analysis specialists DecisionNodes have teamed up to quantify how operators can make costs savings, and increase revenues, through deployment of APT’s production allocation and monitoring workflow, APT Allomon™.

Case studies show that early investment in APT Allomon is a marginal cost with solid value potential.

APT Allomon™ is a fluid chemistry workflow, and integrated deconvolution software package, designed to help operators, in resource plays, identify their drainage network distribution, completion design effectiveness and recommend solutions for optimization.

Figure - It is in the early phases of a project that most value is created or lost. This is where there is a risk that “unknowns” can be compounded by the wrong assumptions being applied to further pad developments in the operator acreage.

APT has worked with DecisionNodes, and colleagues across the industry, to design an example case study for a three-pad development in the Permian Basin, TX. The decision tree algorithm included all of the latest, representative costs while outputting potential increases in (1) recovery factor, (2) production & (3) economic value, depending upon implementation of the fluid chemistry findings as new pads are developed.

Through an effective decision modelling framework, APT and DecisionNodes performed pre-post analysis to evaluate the difference in observations on existing well pads, the performance of new well pads and the expected economic life-time value of the program. In the case-study there is a 60% probability that a $100k investment in APT Allomon™ will improve the economic value of the project by 43%.

Figure – Waterfall diagram of estimated cost (CAPEX, OPEX, etc) designations for a 3 pad development in the Permian Basin, TX, including investment in APT Allomon. Potential improvements in recovery factor, production and economic value are shown relative to a $100K investment.

To find out more about this case study and how the deployment of APT Allomon, and APT’s other analytical & interpretive services, can help with the development of your assets visit us at booth 3030 at the NAPE conference(February 9-11, 2022), sign up for one of our upcoming asset improvement workshops or email us at post@apt-int.com

APT provides geochemical and biostratigraphic laboratory services, basin modelling and petroleum systems analysis to operators worldwide. The company is headquartered in Oslo, Norway, and has additional offices in the UK, USA and Canada.

DecisionNodes is a Norway-based management consulting company, specialising in decision analysis and economic valuation.