PHDWin Software Petroleum Consulting Tutorials

The Leading Software For Reserves Reporting

Free PHDWin Oil & Gas Engineering Software Video Courses

Have you always wanted to learn how to navigate the incredible PHDWin software to complete professional reserve evaluations but could never find a clear cut guide? Now we have a free comprehensive guide on how to utilize the software just like a seasoned reservoir engineer, taught by the CEO of Mire Petroleum Consultants himself, Kurt Mire. He will personally answer any questions you may have on any of the various lessons, all you have to do is ask!

PHDWin Reserves Evaluation Software Tutorial Topics Reference

Creating Reserves Reports with PHDWin Crash Course

`PHDWin Petroleum Consultant software Crash Course Lesson 1`

Production Data:

Monthly oil, gas, water
Daily data
Test data
Lease production (multiple wells)
Allocated vs unallocated
Days on production
Estimated water
Public data, state websites RRC, DOC, Miss O&G Board
Client / operator provided
Commercial sources, DrillingInfo, IHS Energy

Database Creation & Set Up:

New, copy an existing DB
Create cases (well, lease)
Load DrillingInfo data, IHS Data (fast)
- As of date
- Max economic life
- Discount rates
- Sort orders
- Filters
- ID codes
- Graph titles

Well Ownership:

All reserves cases must have the correct ownership data
- Producing wells
- Shut in wells
- Proposed wells

Working Interest (WI)
Revenue Interest (RI)
Lease net revenue interest (NRI)
Most Of The Time: ( NRI = RI / WI ) WI 60%, RI 45%
- Example: 0.45 / 0.60 = 0.75 (NRI)
  - Or: ( RI = WI * NRI ) 0.60 x 0.75 = 0.45 (RI)

Case Creation:

Sources Of Ownership Proof
- Operator / owner
- Check stubs
- LOS (Lease operating statements)
Engineers don’t generally search lease records to determine ownership

`PHDWin Petroleum Consultant software` `Crash Course Lesson 2:`

Operating Expense Analysis:

Crucial component of determining true profit over the lifetime operation of a resource extraction well project
Determine expenses from various sources across both fixed and variable costs, such as:
- Analyzing historical data
- Using published data from similar fields
- Estimating from experience with similar fields
If possible, we want to estimate operating expenses on a per well basis ($/Month)

Price Schedule Set Up:

Fixed VS Variable Settings:
- If we model all expenses as fixed, we will get lower reserves and value (conservative?)
- If we model all expenses as variable, we get higher reserves and value (optimistic?)
Product Price Schedules:
- Monthly price schedules (PHDWin)
- SEC prices (average of last 12 months)
- Flat prices, example $50/bbl.
- Future prices (NYMEX)
- Custom: 2020 $50, 2021 $55, 2022+ $60
Price Schedules / Models in PHDWin:
- Model file (.mod)
- Schedule of oil & gas prices (can include historical prices)
- Model editor module
- Specify prices (without a model file)

Price Differential Analysis:

Price differentials are the differences between the price received for the products (Oil, Gas, NGL) and the market price of the products at the time of sale
The price received for the products affect cashflows, economic limits and reserves value
- Differentials are needed to model future cash-flows as forecasted prices change
How to determine the best price differentials:
- The best way is to compare historical revenue data (on a well or field level) to historical market prices.
- Provided by the operator:
  - “We have a contract for WTI +$1.50”
- Estimated from published reports or industry data.

`PHDWin Petroleum Consultant software` `Crash Course Lesson 3:`

NGL’s & Shrinkage Calculation:

Shrinkage is the difference between gas sales and reported production
- Due to fuel usage on the lease and other reasons such as:
  - Losses, leaks
  - Gas processing
Gas Shrinkage = (1 – (sales/production)) x 100
- Example: (1 – (418 / 791)) x 100 = 47 %
NGL Yield = NGL (gal) / Gas Production (MCF)
- Example: NGL Yield = 5406 / 791 = 6.8 Gal / MCF

Reserve Classes & Categories Specification:

Reserves Classes
- Deterministic
  - Proved – Best estimate / High confidence
  - Probable – Likely (It’s probably there / it’s probably this big)
  - Possible – Could be there / could be this big
- Probabilistic
  - Proved – High confidence (P₉₀)
  - Probable – Most Likely (P₅₀)
  - Possible – High side volumes (P₁₀)
Reserves Categories
- Producing
- Non-producing
- Behind Pipe
- Undeveloped
Examples of Class & Category
- Common Scenarios
  - PDP (Proved developed producing)
  - PDNP (Proved developed non-producing)
  - PBP (Proved Behind Pipe)
  - PUD (Proved undeveloped)
- Rare, Less Common Scenarios
  - (PrNP) Probable non-producing
  - (PrBP) Probable behind pipe
  - (PsUD) Possible undeveloped

Decline Curve Analysis:

EUR is the ultimate amount of oil & gas that will be produced over the life of a well
Reserves are volumes of oil and gas that are left to produce
You have to know “as of date”

`PHDWin Petroleum Consultant software` `Crash Course Lesson 4:`

Type Curve Creation:

Creating Type Curves
- Select wells based on appropriate criteria
- Review the production data
- Don’t use any data after reaching 50% of the well count

Drilling Cases Set Up:

Drilling cases in PHDWin
- Single cases
- Prospect function (multiple cases)

Recompletion Cases Set Up:

Recompletion cases in PHDWin
- Can be tied to a producing well
- Use recompletion editor to link cases (live link)

Reserve Report Execution:

Reserve reports
- Cashflow
- Oneliner
Reserves (are always remaining)
Reserves change every day when the well is producing
If you change the “as of date” the reserves change
The only time EUR & reserves are the same is before you drill the well