Proven Benefits
Increase in revenue, decrease in expense, and reduced labor hours
Capex Reductions
As part of customary business with Avenirre™, wellhead or asset controller boxes can be provided as part of an active platform licensing agreement. Minimal expense will be incurred by the producer as part of a new plunger installation or plunger retrofit from an existing wellhead controller. As we expand our business line and functionality, the same pricing model applies – any hardware on location will be provided as part of a platform licensing agreement with Avenirre™.
G&A Reductions
From the inception of Avenirre™ BI and OFS, the corporate goal was to create a unique software platform that aligns Avenirre™ and producers. Our objective as the service provider is to create more value and cash preservation for the producer than the monthly software expense. Our product is designed to eliminate redundant platforms, provide forward-looking operating cashflow (OCF) reports, integrate economic reserve estimation, and to streamline critical operational and financial metrics in a low operating profit margin environment.
Proven results from an East Texas operator highlight the monthly per well cost effectiveness of the platform when compared to a typical analytical operating team.
LOE Reductions
We recognize the importance and ongoing pressure placed on operators to reduce LOE on their producing assets. Avenirre™ OFS can prove the benefits of lower LOE on automated plunger lift wells through 1) lower automation expense 2) lower chemical expense and 3) lower repair and maintenance expense on production equipment and associated gathering. In a persistently depressed natural gas market with low profit margin assets, every increase in operating profit margin translates to a significant increase in the value, reserves, and life of the well.
The chart illustrates real world results from a tight gas producer showing historical LOE trending down on wells automated by Avenirre™ OFS.
Production Uplift and Flattening
The easiest product to sell is one that sells itself. Avenirre™ OFS automation technology has proven itself across geographic areas and various stratigraphic horizons. Our secret is in our proprietary automation algorithms focused on pressure-based reservoir optimization as opposed to operational optimization. When compared to competitors, our hardware and software platforms outperform in production uplift, terminal decline flattening, plunger cycle gas flow rate, and reducing daily production volatility – all without human input. Our process is to make proactive automation control point changes based on the dynamic reservoir response before a human ever realizes a change was necessary.
Case Studies
Case study 3
Benton 13
Using a production platform shown in graph A, the operator noticed an increasing production decline rate along with erratic daily production on the Benton 13.
Flowing production rates were falling below internal company target volumes for the well.
While not a conventional plunger candidate because of low fluid volumes, production and pressure characteristics suggested a plunger installation was a viable option to restore and optimize production.
Avenirre OFS was chosen in July 2020 over other services based on transmission security, reservoir optimization potential, and lower total installation costs relative to other service companies.
Within several days and no information provided to Avenirre, gas, fluid and GLR trends were moving in the right direction.
Over the span of a month, gas and oil rates increased and production decline rates were flattened when compared to the period before Avenirre plunger installation and automation.
To date, the well has recovered and is a stable producer of gas and oil volumes with no human setpoint intervention.
Using a current commodity forecast, the operator expects to reach payout on the plunger installation in less than four months.
With additional net MCFE volumes and incremental recurring automation LOE, net operating expenses were lowered by 18%. ($0.400/mcfe to $0.328/mcfe)
With a lower CAPEX, lower LOE, increased and flattened production, operating cashflow (OCF), reserve value and well life are increased.
Economic Summary of Avenirre™ OFS Reserve Benefits to an Operator
| Well Name | Payout (Mos) | Approx Life Added (Years) | Incremental PV10 to Capex Ratio | Cost to Add ($/Net Mcfe) | Time On (Mos) |
|---|---|---|---|---|---|
|
Oak Hill 1-1 |
13 |
10 |
8.0x |
$ 0.045 |
23 |
|
Thompson 7 |
30 |
2 |
5.0x |
$ 0.053 |
21 |
|
Houston 14 |
6 |
2 |
4.0x |
$ 0.087 |
17 |
|
Homer Green 6 |
20 |
4 |
5.0x |
$ 0.175 |
17 |
|
Averages |
17 |
4.5 |
5.5x |
$ 0.090 |
19.5 |
