DATA SHEET

Well Cost
Software
ov e rv i e w

Drilling resources, both capital and human, are scarce and it is important to make the
DecisionSpace best use of what an organization has at its disposal. Underestimating project costs
Drilling & Completions will cause budget shortfalls, often resulting in delays or incremental requests for
expenditures. Cost overestimation is just as bad because the money allocated could
K e y f e at u r e s have been spent on other projects. It is important to get the estimates as close to
Produce accurate AFEs for future reality as possible the first time. Well Cost software, designed specifically for drilling
drilling projects using time, cost, and completions, provides powerful tools to produce accurate project estimates
and risk quickly and easily.

Accurate cost estimates are critical for both low-level budgeting and scoping, and for
A systematic and standardized
the more detailed Authorization for Expenditure (AFE). Well Cost software generates
methodology to reduce capital
a comprehensive cost estimate using either deterministic or probabilistic methods,
allocation variation
whether users have detailed historical knowledge of their drilling programs or a simple
Integrated with Landmarks drilling high-level list of tasks and costs.
suite for automated data capture Well Cost software is built on the Engineers Data Model (EDM) platform and
and reporting
integrated with Landmarks well-design and planning tools, enabling engineers to
access historical data and streamline cost estimation and reporting workflows.
Reports and plots are automatically generated, making it easy to analyze the results
and present findings to key stakeholders.

b e n e f i ts

The Right Tool for the Job

Well Cost software was designed by drillers for well construction projects with specific
capabilities that generic spreadsheets cannot match. Instead of a single number,

Well Cost Program showing the cost estimate.

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 the software factors in estimate uncertainty, and generates a range of expected times
and costs (P10, P50, and P90). Typically, spreadsheet solutions oversimplify the
estimation of risk by collecting the list of tasks, the associated cost estimates, and
a contingency factor by which all items are multiplied to account for the unknown.

Consistent Practice for Budgeting and AFE

When users have different projects and engineers using different techniques and
assumptions to budget their projects, it is difficult to compile, compare, and analyze
results across the organization. Well Cost software provides a systematic, consistent
methodology and tool that organizations can standardize on saving time, improving
team collaboration, and simplifying training.

More Accurate Estimates

The best estimates rely on knowledge of how projects have performed in the past.
Well Cost software has access to all the historical well data available in the EDM
database, making it easy to base new estimates on the performance of previous
projects. Integration with Landmarks drilling applications enables engineering data
entered in applications like StressCheck, CasingSeat, and WELLCAT to be
immediately available for use in the costing analysis.

f e at u r e s

Probabilistic Time and Cost Estimation

Well Cost software includes a Monte Carlo-based simulation tool that gathers input
on the activities, costs, and uncertainties associated with the candidate wells and
predicts the AFE cost and drilling time. Well data can be modeled from available
historical data, and the analysis can factor in unplanned events such as non-
productive time (NPT).

Estimates over time and depth

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Estimate Multiple Well Campaigns
In addition to producing estimates for single wells, Well Cost software allows users
to estimate multiple wells together as a campaign. The resulting single estimate can
take into account expected cost efficiencies that result in wells constructed later in
the campaign costing less than those constructed earlier.

Compare Plan versus Actual

As the project progresses, it can be helpful to understand how the actual cost and
time data compare to the estimate. Well Cost software can interface with operational
reporting systems to retrieve this actual data and plot it against the estimate. The
AFE can then be re-generated for the remaining phases and activities, allowing users
to understand the time and cost required to complete the project. After completing
the project, the actual data can be used to find the p-value at which the project was
executed allowing users to make more accurate estimates in the future.

Compare actual data vs. estimate.

Customizable
Each estimate requires the use of event, phase, activity, and cost codes that are likely
unique to a company. Well Cost software comes with a predefined list of codes which
can easily be tailored to match those in a companys financial accounting system.

Time-Saving Templates
Most companies have a set approach to drilling, so there is no need to begin with a
blank activity list when starting a new estimate. Well Cost software can be used to
define a drilling program once and then save it as a template. Such templates can
then be used in the future to expedite the costing process, as the engineer only has to
modify the data to fit the requirements of the new well.

Landmark
 System and Software Automatic Plots and Reports
Well Cost software produces a set of plots and reports as part of the simulation, auto-
matically giving users the tools needed to analyze the output. Plots include a variety of
s o f t wa r e r eq u i r e m e n ts X-Y charts, bar charts, and histograms. The reports are available in standard formats
(PDF, XML, XLS), and can be saved, printed, or emailed directly from the application.
Engineers Data Model (EDM) software
Microsoft Database Engine (MSDE) Estimation Wizard
An estimation wizard guides users through the workflow, making it easy to understand
o p e r at i n g syst e m s
the process of creating the estimate. Familiar editors and simple input forms are used
Microsoft Windows 7 SP1, 64-bit to collect data, reducing the time required to be productive and streamlining training
Windows Server 2008 R2 SP1, 64-bit for new users.
Windows Vista 64-bit
Oracle11.2.0.2 and 11.2.0.3 Integrated with Landmark Drilling Applications
Oracle 10.2.0.4 Once the estimate is complete, Well Cost software can publish cost and activity infor-
SQL Server 2008 R2 SP1 mation to the EDM database for the OpenWells Cost Estimate and AFE report, as well
SQL Server Express 2005 SP3 as the OpenWells Well Planning report. The software also uses the same framework
elements (Well Explorer, Associated Data Viewer, Reference Datum, and the Wallplot)
as the other Landmark drilling applications for consistent navigation and ease of use.

Drilling resources are scarce, and it is important to allocate

capital appropriately to your opportunities to maximize
return on investment.

Landmark offers solutions to help you deliver on your business strategies.

For questions or to contact your Landmark representative, visit us at
landmarksoftware.com.

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