The main goal of any oil and gas company is to maximize their profit at the fastest rate possible after considering all the potential risk. Economic models will accelerate the decision process that will best suite a project and almost any other decision will be based on the economic evaluation constructed. Since economic models will be the key decision during the distribution of the capital budget, one needs to understand some of the challenges that can be encountered such as:
- Integrating all the technical analysis into a recommendation
- Evaluating the recommendation for profit potential with an economic analysis
- Making a final investment decision recommendation to management based on technical and economic evaluation
Colossus Group provides several solutions that will help our clients with any economical model problems:
- Net Cash Flow Model
- Breakeven analysis
- Financial Sensitivity Model
To gain access of unique perspective to your current challenges and how other operators are thriving in similar situation:
- Has your field development concept been finalized?
- Have you estimated your reserves, rates and costs before or after calculating your economical models?
- Have you performed sensitivity analysis to get a better understanding of the economic possibility outcomes of the project?