Sidetrack and Recompletion Risks in Oil Fields II. Economics of Sidetrack Development

摘要

The worth of undertaking a sidetrack well for an already producing oil field is examined in terms of the chances the sidetrack will fail and also the chances the sidetrack, even if successful, will kill already producing wells. The decision to proceed with such a sidetrack is shown to be sensitive to the residual producible reserves, the costs of the sidetrack, and its costs per bbl of oil relative to the costs through already producing wells and to the total cast flow achieved to date.