Introduction to Peep Economics

Analysis
Author Name (28-pt Arial Narrow)
Job Title (24-pt Arial Narrow)
Schlumberger (use shift-return to force on next line)

Agenda
Introduction
Objectives
Executive Summary
Project Workflow
Conclusions and Recommendations

Merak Products
Portfolio Management
Project Economics

Capital Planning
Decision support and
portfolio management
tool

Financial Planning

Peep
Economic evaluation
and decline analysis

Fiscal Model Library

Decision Toolkit
Decision analysis and
risk management tool

Petroleum Financials
Financial Planning and
Reporting

Reserves Management
VOLTS
Reserves tracking and
reporting system

What does Peep stand for?

Petroleum
Economic
Evaluation
Program

Peep Capabilities

Project Economics
Perform Production Forecasts
Perform Risk Analysis
Perform sensitivity Analysis

Peep

Is an International Economic Evaluation, Decline Analysis and

Fiscal Modeling application
Aids in the analysis and calculation of the value of oil and gas
properties

The Peep System

Model Document
Operating Expenses
Capital Definitions
Taxation
Royalties
Cost Recovery

Well Document
Production History
Production Forecasts
Test data
Decline Curves

Currency Document
Conversions
Inflation

Prices Document
Base Markers
Offsets
Reference Prices

Case Document
Project Entries
Time Line
Interests

Global Parameters
Document
Escalations
Discounting
Common Pricing

Reports
End result contains
data you specify,
including graphs

Petroleum Economics Evaluation Program (Peep)

Inputs
Production Rates
Price
Capital Costs
Opcosts
Prices & Currency
Inflation & Escalation
Discount Rates

Calculation Engine

Outputs

FM

Cash Flow
Net Present Value
(NPV)
Rate of Return (ROR)
Economic Limit

The Fiscal Model:

Tax Laws
Contract Terms
Production Sharing
Econ Calc Rules
Financials

Over 108 Peep Clients worldwide

9

Side Tabs
(Depending on which
Peep tab you have open
these side tabs will change.)

Peep Tabs
(this is where the user can enter/modify
information)

Peep Select Window

(This is where you open/create a new case,
well, batch, schedule, consolidation
or any other type of Peep document)

Menu and Tools

(Depending on what you have open
these icons/buttons will be active)

Basic Data Entry For Economic Analysis

Case Creation &
Case Parameters
Production
Volumes

Prices

Interests

Custom:
Additional Rev and
Expenses

Operating
Expenses
Burden:
Ad Valorem &
Severance
Capital
Investments

Income or Federal
Taxes

Result:
Basic Cash Flow

Simplified Financial Calculation

=
=
=

Revenue (Volume * Price)

Operating Costs
Royalties
State Taxes
Operating Income
Capital
BTCF
Taxes Payable (Taxable Income DD&A)
ATCF
1

Basic Cash Flow

Value
Economic Limit

Positive
Cash Flow
(+)

Payout
Time

Negative
Cash Flow
(-)

Capital Investment
0
1

Scenarios
Scenarios are used to model sensitivities eg: (high, base, low,
dry hole) for variables in your Peep case.

Apply Scenarios
Setting scenarios in cases.
Price tab
Production tab
Opcost & Capital tabs

Common Reporting Across All Regimes

Reporting in FML

Common Reports
across all regimes.