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Module7 Formula Summary With Examples

The document provides a summary of key formulas related to drilling cost estimates along with worked examples for each formula. It covers topics such as exponential drilling costs, estimating depth from cost, drilling cost per foot, penetration rate relationships, drilling time, and total drilling costs using two methods. Each section includes a formula and a practical example to illustrate its application.

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3 views2 pages

Module7 Formula Summary With Examples

The document provides a summary of key formulas related to drilling cost estimates along with worked examples for each formula. It covers topics such as exponential drilling costs, estimating depth from cost, drilling cost per foot, penetration rate relationships, drilling time, and total drilling costs using two methods. Each section includes a formula and a practical example to illustrate its application.

Uploaded by

princessjackson901
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

PET 534 – Module 7 Formula Summary with Worked Examples

Drilling Cost Estimate


This document summarizes the key formulas presented in Module 7 (Drilling Cost Estimate)
and demonstrates how they are applied using worked examples.

1. Exponential Drilling Cost with Depth


Formula:
C = a e^(bD)
Where C = cost, D = depth, a and b = constants based on location.

Example:
If a = 100,000, b = 0.0002 ft⁻¹ and depth D = 10,000 ft:
C = 100,000 × e^(0.0002 × 10,000) = 100,000 × e^2 = 100,000 × 7.389 = $738,900

2. Estimating Depth from Cost


Formula:
D = (ln C − ln a) / b

Example:
If C = 738,900, a = 100,000, b = 0.0002:
D = (ln 738900 − ln 100000) / 0.0002 = (13.51 − 11.51) / 0.0002 = 10,000 ft

3. Drilling Cost per Foot (Bit Economics)


Formula:
Cf = [Cb + Cr(tb + tc + tt)] / ΔD
Cb = bit cost, Cr = rig cost per hour, tb = rotating time, tc = non rotating time, tt = trip time,
ΔD = footage.

Example:
Cb = $800, Cr = $400/hr, tb = 15 hr, tc = 2 hr, tt = 7 hr, ΔD = 900 ft
Cf = [800 + 400(15+2+7)] / 900 = [800 + 400×24] / 900 = 10,400 / 900 = $11.56/ft

4. Penetration Rate Relationship with Depth


Formula:
dD/dt = K e^(−2.303 a2 D)

This shows that penetration rate decreases exponentially with depth due to formation
hardness and pressure.

5. Drilling Time to Reach a Given Depth


Formula:
td = [1 / (2.303 a2 K)] (e^(2.303 a2 D) − 1)
Example:
If a2 = 0.0001, K = 50, D = 10,000 ft:
td ≈ [1 / (2.303×0.0001×50)] (e^(2.303×0.0001×10000) − 1)
td ≈ 86.8 hours

6. Total Drilling Cost (TDC) Method 1


Formula:
TDC = (Bit Price / Meters Drilled) + (Rig Cost per Hour / ROP)

Example:
Bit cost = $5,000, Bit life = 6,500 m, ROP = 52 m/hr, Rig cost = $200/hr
TDC = (5000/6500) + (200/52) = 0.77 + 3.84 = $4.61/m

7. Total Drilling Cost (TDC) Method 2


Formula:
TDC = (Bit Price / Meters) + Fixed Cost + (Variable Cost / ROP)

Example:
Bit cost = $5,000, Bit life = 8,000 m, Fixed cost = $1.50/m, Variable cost = $95/hr, ROP = 40
m/hr
TDC = (5000/8000) + 1.50 + (95/40) = 0.63 + 1.50 + 2.38 = $4.51/m

8. Production Cost per Hole


Formula:
Cost per hole = Rig cost per hour × Time to drill hole

Example:
Rig cost = $150/hr, Time = 20 minutes = 0.33 hr
Cost per hole = 150 × 0.33 = $50

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