Enter Operating Costs

Enter capital costs on individual wells on Economics | Prices & Costs | Capital Costs or in bulk using the Data View grids or a spreadsheet import. Security permissions are required to use some of the bulk editing tools. Contact your administrator for access.

Interests

When you enter capital costs, enter the gross amount. The working interest or facility interest share is calculated according to the percentage entered for Operating Cost Interest or Facility Interest on Economics | Interests & Royalties. See Enter a Working Interest.

  • Working Interest costs: costs that a company has an interest in.
  • Facility Interest costs: costs for a facility that a company has an interest in.

Inflation

Inflation is applied to each cost according to the operating cost inflation rate entered in the Price Deck Editor. The default operating cost inflation rate is zero. See Edit Inflation.

Incremental Costs

When you use the incremental forecasting mode (see Create an Incremental Forecast), you only need to add the incremental portion of your cost. However, you must create the incremental cost by clicking Override in the Information bar at the top of the costs grid. See Enter Incremental Costs.

If you are using incremental forecast mode on the well, the Base cost (from the PDP reserves category) is displayed with a light blue bar below the cost name. The new incremental cost is displayed with a dark blue bar.

Incremental costs and forecasts are not used in the PDP reserves category.

GCA (Gas Cost Allowance) Costs

If a cost category name is appended by (GCA) it is used to calculate GCA allowance.

Costs on Shut-in Wells

When entering operating costs on shut-in wells, you must enter the costs as an override in any reserves category other than Common and change the Cost Type to Cost/Time. When operating costs are entered in Common or inherited from Common on shut-in wells, the costs are not calculated and do not appear in reports.

Entering Operating Costs

To enter operating costs

  1. Go to Economics | Prices & Costs | Operating Costs and click Add Costs.
  2. Move the costs you want to add from the Available Costs window to the Selected Costs window by double-clicking them.
  3. Click OK.
  4. Enable Show cost details at the bottom of the costs grid.
  5. Select or enter the following information at the top of the cost column:
    6. Option Description
    Name You can rename the cost, but the new name only applies to the cost on the current entity. However, you can also create custom costs. See Create Custom Capital or Operating Costs.
    Prevent Inflation Prevents inflation.
    GOR Deductible Applies the cost to any GORR entered on Economics | Interests & Royalties.
    Escalation % (annual) Escalates the cost by the percentage you enter (in addition to the operating cost inflation rate in the price deck).
    Apply to Raw Gas (Variable costs only). Applies cost to raw gas.
    Cost Type
    • Cost/Well/Time: (fixed op costs only) For each well in the well count, the cost value is applied per time period (per day, month, or year).
    • Cost/Time: (fixed op costs only) Regardless of the number of wells, applies the cost value per time period.
    • Cost/Volume: (variable op costs only) Cost is applied per volume of associated product.
    Unit Select a daily, monthly or annual unit.
  6. In each cost column, enter the gross amount of each cost next to the appropriate date.

Tips

  • You can change the date display under Display Mode, in the bottom right corner of the screen.
  • You can copy costs to other wells using the Copy an Entity.