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The Factor Decay is used as a part of the Sequencer drilling program, where it can reduce (decay) the target factor (90%, 95%, 100%, 105%, 110%, etc.). This is useful because a Sequencer program targeted at 110% production can create a long term overfill of the facility, which would accelerate the drilling schedule beyond what is reasonable or realistic, thus creating a large backlog of production potential that is held back (see graph below).
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Hence, the Factor Decay helps to reduce the held back production potential. For instance, if the Factor Decay is 0.95 and the target production is 110%, the target production will be calculated as follows:
- Year 1: 110%
- Year 2: 110% * 0.95
- Year 3: 110% * 0.95 * 0.95