Abstract
There is no united method to evaluate developed low-grade reservoir. Cash flow economic evaluation method is widely used in China and other countries. Cash flow method contains three different economic evaluation methods, they are VP, IRR and investment recovery period methods. In this paper, we evaluate a developed low-permeability sandstone reservoir and a developed middle-high permeability complex fault block sandstone reservoir with the cash flow economic evaluation method. We get the evaluation standard charts of the developed low grade big reservior, developed fault block reservior with middle-high permeability, developed fault block reservior with low permeability and heavy oil thermal recovery reservior. This new cash flow method lays theoretical foundations for evaluation of developed low-grade reservoir and other kinds of reservoirs.
Highlights
It is difficult to forecast some parameters based on the cash flow economic method without proper mathematical models
The minimum economic reserve method is to use the physical properties of oil reservoirs, such as permeability and oil viscosity, reservoir depth, reserves abundance and possible economical factors to model related mathematical models and to calculate the minimum economical reserve
If the evaluation reserve is larger than the minimum economical re- serve, we can draw a conclusion: There is no value for devel- opment of this kind of reserve
Summary
It is difficult to forecast some parameters based on the cash flow economic method without proper mathematical models. In China, many related experts proposed some methods, such as minimum economic reserve method (Li & Luo, 1999), million ton capacity investment method (Li & Wu, 2006) and movable oil price method (Zhong & Ye, 2009) to facilitate the operation. The geological institute of Shengli oilfield proposed the movable oil price method after years of practical experience (Chen & Tian, 2009; Chen, Hu, & Wang, 2011). This method is based on the theory that the oil price in development project can not be the present real oil price. We will introduce the cash flow economical method with three kind of mathematical models to evaluate developed low-grade reservoir and other kinds of reservoir
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