Can it be estimated how long, how much oil and/or natural gas and how much money a “specific” well will produce?
Yes, once the well begins to produce, the monthly production can be graphed and this graphed production can be extrapolated to predict future production. The longer the well has produced, the more accurately the future production can be extrapolated. Wells producing from the same producing interval from the same field will not all follow the same production curve. These decline rates will vary depending on the porosity and permeability surrounding each producing well. The monthly or annual net revenues can be estimated by multiplying the future monthly production derived from the extrapolated decline curve, by both the price received for the oil and/or natural gas sold and the net revenue percentage for that well and then deducting the operational cost for that well. When the operating expenses for a well exceed the revenues, the well will no longer be economic.
