calculate_well_economics
Calculate discounted cash flow analysis for oil and gas wells to determine NPV, IRR, payout period, and profitability index using production data and economic assumptions.
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 |