calculate_well_economics
Run discounted cash flow analysis for a well using monthly production volumes, commodity prices, operating costs, and capital expenditure. Returns NPV, IRR, payout period, profitability index, and monthly cash flows.
Instructions
Full discounted cash flow analysis for a well.
Takes production arrays (from decline forecast) plus economic assumptions. Returns NPV, IRR, payout period, profitability index, and monthly cash flows.
Args: monthly_oil_bbl: Monthly oil production (bbl) for each period. monthly_gas_mcf: Monthly gas production (Mcf) for each period. monthly_water_bbl: Monthly water production (bbl) for each period. oil_price_bbl: Oil price ($/bbl). gas_price_mcf: Gas price ($/Mcf). opex_monthly: Monthly operating expense ($). capex: Total capital expenditure ($), applied at time 0. royalty_pct: Royalty fraction (0-1). Default 0.125. tax_rate: Severance/production tax rate (0-1). Default 0.0. discount_rate: Annual discount rate for NPV. Default 0.10. working_interest: Working interest fraction (0-1). Default 1.0. net_revenue_interest: Net revenue interest fraction (0-1). Default 0.875.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| monthly_oil_bbl | Yes | ||
| monthly_gas_mcf | Yes | ||
| monthly_water_bbl | Yes | ||
| oil_price_bbl | Yes | ||
| gas_price_mcf | Yes | ||
| opex_monthly | Yes | ||
| capex | Yes | ||
| royalty_pct | No | ||
| tax_rate | No | ||
| discount_rate | No | ||
| working_interest | No | ||
| net_revenue_interest | No |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
| result | Yes |