CMA Production & Operations Analysis Flashcards
6 cards from real CMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CMA Production & Operations Analysis flashcards as text
Which production decline curve model assumes a constant fractional decline rate over time?
Answer: Exponential decline
Exponential (geometric) decline assumes a constant fractional production decline rate per unit time, resulting in a straight-line plot on a semi-log graph of rate versus time.
In decline curve analysis, what does the hyperbolic exponent 'b' represent?
Answer: The rate of change of the decline rate itself, indicating how quickly the decline rate is decreasing
The hyperbolic exponent b (ranging 0 to 1) describes how rapidly the decline rate decreases over time; b=0 is exponential, b=1 is harmonic, and intermediate values are hyperbolic.
What is 'economic limit' in the context of oil or gas production?
Answer: The production rate at which operating costs equal revenue, making further production uneconomic
The economic limit is the monthly (or daily) production rate at which the well's gross revenue exactly covers its operating expenses; below this rate, the well costs more to operate than it earns.
What does 'EUR' stand for in mineral production analysis, and why is it important to appraisers?
Answer: Estimated Ultimate Recovery — the total volume of minerals projected to be recovered over the life of a well
EUR is the total quantity of oil or gas projected to be produced from a well before it reaches its economic limit, and it is the foundation for reserve estimates and royalty income projections.
Which operational metric measures how efficiently a well converts reservoir energy into surface production?
Answer: Recovery factor
Recovery factor is the percentage of original oil or gas in place (OOIP/OGIP) that is ultimately produced, reflecting reservoir quality, drive mechanism, and operational efficiency.
What is 'lifting cost' (also called LOE — lease operating expense) in mineral production?
Answer: The per-unit cost of extracting and bringing minerals to the surface and preparing them for sale
Lifting cost (LOE) is the ongoing operating expense per barrel or MCF to produce, gather, and treat minerals at the wellsite, excluding capital drilling costs and royalties.