Deal Evaluation in ComboCurve: Permian Basin 5 Well Package

Transcript:

Overview of the Deal

This deal involves five PDP wells located in Addy and Lee Counties in the Permian Basin. These wells have been producing for several years. While it’s a relatively small deal, I’ll use it to showcase features in ComboCurve that streamline the evaluation process, making it far more efficient.

Permian Basin Opportunity

5 Well Package (Non-Operated WI)
Eddy and Lea Counties, New Mexico

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Efficient Data Import with Sharecodes

One of the standout features of ComboCurve is sharecodes, which simplify importing all relevant data—well information, production, forecast, and economics—without needing to export or download files.

Here’s how it works:

1. Visit the EnergyNet page for the deal.
2. Copy the provided sharecode.
3. Navigate to the Project List view in ComboCurve and select Import Project.
4. Paste the sharecode, name your project, and click Import.

For smaller projects like this one, the process takes less than 15 minutes. Once completed, click Work next to the project name to access the Project Summary Page, where forecasts and scenarios are organized.

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Filtering for Target Wells

This deal is part of a larger package containing 197 wells, but we’re focused on just five. ComboCurve’s filtering capabilities make it easy to isolate the wells we need.

1. Click the funnel icon to create a new filter.
2. Select the wells of interest and save the filter (e.g., “Divestment Assets”).
3. Reference this filter throughout the platform for a seamless evaluation process.

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Customizing Forecast Parameters

The provided forecast assumes a 6% terminal decline. To take a more conservative approach:

1. Copy the original forecast to preserve the baseline version.
2. Navigate to Forecast Options and select Mass Adjust Terminal Decline.
3. Change the terminal decline to a higher value (e.g., 8%) for all phases.

This quick adjustment allows for running sensitivities and analyzing how changes impact economics.

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Running Sensitivities and Economic Models

To compare forecasts and economic models:

1. Create qualifiers for different scenarios, such as a “Buyer” qualifier with adjusted forecasts.
2. Incorporate pricing sensitivity by pulling strip pricing from ComboCurve, using data directly from the CME website for WTI and Henry Hub prices.
3. Set up combos to compare Seller and Buyer cases, and run your scenario.

Results can be exported in both CSV and PDF formats.

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Professional Reporting with Custom PDFs

ComboCurve’s Custom PDF Editor adds professionalism to your reports:

• Include company logos at the top and bottom.
• Select and customize headers, metrics, and layouts (portrait or landscape).
• Create reusable templates for future projects.

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Visual Analysis with Power BI

For a deeper dive into results, use Power BI reports to visually compare combos based on metrics like:

• Gross volumes between forecasts.
• PV10 differences, highlighting the impact of pricing and forecast adjustments.

In this case, our more conservative approach resulted in a slightly lower valuation compared to the original estimate.

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Final Thoughts

Thank you for joining me in this walkthrough! If you’d like to learn more about ComboCurve, you can:

• Book a demo at combocurve.com.
• If you’re a current client, click the question mark icon in the platform to contact your CS representative or submit a ticket to our Product Solution Team.