Steps In The Life Of An Oil & Gas Exploration & Production

Below are the steps taken before anybody can start drilling for oil & gas:

1. Acquire seismic, surface and subsur-face
data (well logs, cores and tests) in area
of interest.
2. Generate prospect idea.
3. Acquire leases through purchase or
farm-in arrangement.
4. Estimate drilling and completion costs
to test prospect.
5. Predict expected volume of reserves,
likely production rates and operating costs.
6. Run a model of economics to deter-mine
the rate of return, cash flow and ex-pected
value generated by the sale of the
oil and gas if the prospect is successful.
7. Assess stratigraphic and structural
risks and determine if the expected returns
are sufficient to justify the capital expendi-tures.
8. Apply for federal and/or state drilling
permits.
9. Contract drilling rig, mud-logger, ce-menting
and well logging services.
10. Prepare location and move in rig.
Piceance Basin.