3.7 An oil well is producing consistently for the last five years. The monthly oil production for each year is given as follows. It costs $2,000 per month to operate the well, the current oil price is $27 per barrel, and the severance tax is 7.085% of the gross value. The well is not producing any associated gas. Compute (a) the EI. based on 100% WI and 87.5% NRI, (b) plot the production versus time on an appropriate graph paper and compute the exponential decline, (c) the remaining oil reserves as of 1/1/1999, (d) production rate at the end of 2001, (e) the remain- ing life of the well, (f) ultimate oil recovery, and (g) production for 1999, 2000, and 2001. 3.8 Confirm the reserves obtained in Problem 3.7 by using rate- cumulative oil production plot. Month January February March April May June 1994 2,059 1.808 1.627 1,099 1,575 July August 1,660 September 1.575 October 1,538 November 1,341 December 1,702 Oil Production, Stb 1996 1.637 1.265 1.386 1,310 1.300 1.241 1.289 1995 1,882 1.621 1,5% 1,551 1,526 1,553 1,514 1.320 1.534 1,309 1,474 1.240 1.290 1.240 1.348 1997 2,334 2,172 1,208 1,191 1,370 1,315 1,268 1,312 1,229 1,202 1,229 1998 1.151 1,028 1.151 1.8975 1.081 98.3 1,037 939 1,044 996

3.7 An oil well is producing consistently for the last five years. The monthly oil production for each year is given as follows. It costs $2.000 per month to operate the well, the current oil price is $27 per barrel, and the severance tax is 7.085% of the gross value. The well is not producing any associated gas. Compute (a) the FI. based on 100%WI and 87.5%NRI, (b) plot the production versus time on an appropriate graph paper and compute the exponential decline, (c) the remaining oil reserves as of 1:1/1999,(d) production rate at the end of 2001 , (e) the remaining life of the well, (f) ultimate oil recovery, and (g) production for 1999,2000 , and 2001 . 3.8 Confirm the reserves obtained in Probiem 3.7 by using ratecumulative oil production plot