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Determining discounted cash flow rate of return and payout time for onshore development wells: a graphical method

Technical Report ·
OSTI ID:7352161

One of the responsibilities of the Federal Bureau of Mines is the continuing appraisal of the availability of domestic fuel resources. The economics involved in the recovery of these resources is an integral part of this responsibility. A nomographical approach is proposed as a fast, easy-to-use, and reasonably accurate method for estimating expected discounted cash flow (DCF) rate of return and payout time for onshore development drilling and oil production. All costs pertaining to drilling, completing, and equipping development wells, annual expenses of operation, maintenance, and taxes incurred in producing properties, and crude oil prices were considered in developing the nomographs. This report briefly outlines the origin, derivation, and use of the nomographs.

Research Organization:
Bureau of Mines, Dallas, Tex. (USA). Dallas Mineral Supply Field Office; Bureau of Mines, Denver, Colo. (USA)
OSTI ID:
7352161
Report Number(s):
BM-IC-8593
Country of Publication:
United States
Language:
English

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