CMA CMA Production & Operations Analysis 1

Question 1

Which production decline curve model assumes a constant fractional decline rate over time?

Accepted Answer

Exponential decline

Answer

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.

Question 2

In decline curve analysis, what does the hyperbolic exponent 'b' represent?

Accepted Answer

The rate of change of the decline rate itself, indicating how quickly the decline rate is decreasing

Answer

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.

Question 3

What is 'economic limit' in the context of oil or gas production?

Accepted Answer

The production rate at which operating costs equal revenue, making further production uneconomic

Answer

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.

Question 4

What does 'EUR' stand for in mineral production analysis, and why is it important to appraisers?

Accepted Answer

Estimated Ultimate Recovery — the total volume of minerals projected to be recovered over the life of a well

Answer

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.

Question 5

Which operational metric measures how efficiently a well converts reservoir energy into surface production?

Accepted Answer

Recovery factor

Answer

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.

(CMA) Certified Minerals Appraiser Practice Test

(CMA) Certified Minerals Appraiser Practice Test

CMA CMA Production & Operations Analysis 1