CMA CMA Production & Operations Analysis 2

Question 1

In coal mining operations analysis, what does 'strip ratio' (or stripping ratio) measure?

Accepted Answer

The ratio of overburden (waste rock) volume that must be removed to expose one unit of coal

Answer

The strip ratio expresses how many cubic yards or tons of overburden must be removed to mine one ton of coal, directly determining surface mining economics and profitability.

Question 2

What production ratio metric is used to assess the economic importance of associated natural gas versus crude oil in a combined oil and gas operation?

Accepted Answer

Gas-to-oil ratio (GOR)

Answer

The gas-to-oil ratio (GOR) measures the volume of gas produced per barrel of oil, which is used to determine liquid richness, reservoir characteristics, and relative value of gas versus oil production.

Question 3

In mineral production analysis, what does 'water cut' indicate and why does a high water cut matter?

Accepted Answer

The percentage of produced fluid that is water, which increases operating costs and indicates reservoir depletion

Answer

Water cut is the fraction of total produced fluid that is water; as it rises, it increases disposal and lifting costs while reducing the proportion of saleable oil, negatively affecting well economics.

Question 4

Which type of enhanced oil recovery (EOR) method injects CO2 into a reservoir to improve oil displacement efficiency?

Accepted Answer

CO2 miscible flood

Answer

CO2 miscible flooding injects carbon dioxide that mixes with the crude oil, swelling it and reducing its viscosity to improve displacement and increase recovery factors beyond primary production.

Question 5

What is the significance of the 'reserve-to-production (R/P) ratio' for mineral assets?

Accepted Answer

It estimates how many years of production remain at current production rates

Answer

The R/P ratio divides total remaining proved reserves by annual production rate, yielding the estimated number of years before those reserves are exhausted at the current pace.

(CMA) Certified Minerals Appraiser Practice Test

(CMA) Certified Minerals Appraiser Practice Test

CMA CMA Production & Operations Analysis 2