Cost Item Panel Page 1 of 3

Home > Well Cost Wizard Toolbar > Time and Cost > Cost Configuration > Cost Item Panel

Cost Item Panel

Input menu > Cost Configuration command > Select Cost Item node -or- Well Cost Wizard Toolbar > Cost Configuration > Select Cost Item node

The Cost Item panel is the preferred method to input cost data into the Well Cost application . There are four (4) main sections in the panel, which are:

l Identification

l Details

l Unit Cost Variation

l Limit_to_Phases

Identification
The Identification section identifies the cost item.
Note: The Subcode and Description fields are grayed out if they come from the database picklist. If the cost item is created by the user it is a custom
cost item and the Subcode and Description are editable.
Subcode
Lists the subcode as read-only, if it comes from the database picklist. If the cost item is custom, then you can select from the items in the
picklist.
Description
Lists the description of the cost item. If the cost item is custom, then you can enter a brief description.
Type
Assigns cost types that relate to several scenarios found throughout the drilling life cycle. Think of the Type as a shortcut method to assign
cost across a range of Phases (or to a single Phase), rather than having to manually enter cost for every Phase.

¡ User Entered - allows the user to input cost for all phases directly into the Cost sheet. This cost type is suited to those cost that occur
multiple times but are unique, such as bit costs.

¡ Single - one time cost associated once per each phase and are not multiplied. Single cost items can be restricted by the phase from/to
column. Single costs are best suited to apply on fixed costs that occur on particular phases like Wellhead.

¡ Day - a unit cost multiplier that depends on the number of days in the phase. A lot of costs are defined by day, such as rig costs.

¡ Tot Depth - a unit cost multiplier that depends on the total depth of the phase. This cost type is suited to tangible items that depend on
length run in hole.

¡ Phs Depth - a unit cost multiplier that depends on the elapsed depth versus the phase. Therefore, phase depth will apply only on drilling
phases. This cost type is suited to footage charges.

¡ Casing - the costs obtained from the casing spreadsheet, which will occur on the last phase of each hole section.

¡ Lump Sum - Lump sum works the same as single costs except the costs are allocated across phases so that the total equals the
original unit cost. The multiplication factor for lump sum costs is based on the days for that phase divided by the total days that this cost
item is applied to. It makes no sense to apply a lump sum cost to a single phase (though it will still work).

¡ Risk Cost - This cost may only be applied to risk activities (for example lost in hole charge, or extra string of casing). Only risk costs will
appear in the menu for risk activities.

Note: If a risk activity is assigned the Risk Cost cost type, then it becomes available in the Cost# picklist in the Probable (Risk) Activity
area on the Activity panel.
Comment
Enter a comment to describe this cost item .
Vendor, Contract, Item
Select the vendor, contract, item as picklists from the cost catalog. The catalog is imported or defined in the cost catalog configuration
page. When an item is selected other values will be copied over from the catalog. These fields will be disabled if no items exist in the cost
catalog.
Return to Top

Details
The Details section assigns a value to the cost item. Optionally, you can apply a formula to the cost, or limit the cost to only specific phases.
Unit Cost
Enter the cost of the item as unit cost.
If the Type is "User Entered" the field will be grayed out because the value is entered in the Cost sheet.

mk:@MSITStore:C:\Landmark\EDT\Documentation\WellCost.chm::/Menus_and_Toolbars... 5/2/2024
Cost Item Panel Page 2 of 3

Formula
The Formula field is located to the right of the Type field. You can enter either a formula, a unit count for the item, or an exchange rate.
The example below shows an exchange rate added to the Transportation item. The EXCH1 field in the Cost Calculation tab was set to 0.1.
Notice that "EXCH1" was entered in the formula field in the Cost Sheet. Therefore, all values are multiplied by 0.1.

For more information, see Formulas.

Currency
Select the currency that you want from the drop-down list. The list shows 3-digit codes for the available currencies.
Tangible / Person / None
This cost item can be designated as tangible or personnel, Tangible status is carried through to the Excel output where the costs may be
filtered and summed by type.
Unit Cost Variation
To enable the Unit Cost Variation fields, select the Variations on Costs option on the Options dialog.
Variation input is entered as distribution values as follows.
Use Distribution
Activate this checkbox to apply a distribution to the Cost. Distributions available in the Well Cost application are found in the picklist. Input
of certain parameters, such as standard deviation and mean, for each distribution type varies.
For more information, see Distributions in Well Cost.
To automatically input variation data:

1. Click the Query button to analyze offset well data for statistical analysis of a chosen parameter.

The button opens a wizard that allows open queries that can be used for Offset well cost and time data that can come from other
databases or tabular files, such as spreadsheets from third-party tools such as Microsoft® Excel.

2. Build a query using the Query Wizard. Once you click Finish in the wizard, the results will populate distribution parameters in
the panel.

For more information, see Query Wizard.

Limit to Phases
Specify the events, phases, or activities to which this cost applies. This can be done for all cost types. When no phases or activities are
specified, the cost will apply to all phases and activities.
You can specify individual phases or activities as well as a range of phases and activities. When specifying a range of phases or activities,
select the first phase or activity to which the cost applies from the Start drop-down box and then the last phase or activity to which the cost
applies from the End drop-down box. Note that the list of phases/activities defaults to empty (apply to all), but you can use the table
controls to add, insert, or remove items:

Start - specify the start (or only) phase/activity. The event is required if a phase spans more than one event.
End - specify the end phase/activity. It is not necessary to specify an end event/phase for cost applied a single phase/activity.
Multiply: For this phase or range apply a multiplier to the unit cost. For example, a day rate for a service where for some phases 2 people
are required and others require only one.

mk:@MSITStore:C:\Landmark\EDT\Documentation\WellCost.chm::/Menus_and_Toolbars... 5/2/2024
Cost Item Panel Page 3 of 3

Add: Place an additional quantity to that phase. For example, a service personnel charge would have an additional few days at the start
for callout in advance and some additional days at the end when waiting for transportation.
Note that if you want to limit costs at the activity level, you must have enabled the Apply Cost to Phase/Activity on the Cost Calculation tab
of the Input > Options dialog. Activity costs only apply to activity based time models.

Return to Top

Related Topics
Cost Category Panel
Cost Code Panel
Cost Configuration Tree Control Right-Click Menu Commands
Cost Configuration

mk:@MSITStore:C:\Landmark\EDT\Documentation\WellCost.chm::/Menus_and_Toolbars... 5/2/2024