Asset Valuations with softPetroleum AppraiserÔ

softPetroleum AppraiserÔ  was designed to be the most sophisticated oil and gas appraisal software on the market while retaining an unsurpassed degree of straightforward usability.  The software was designed for users ranging from non-technical business decision-makers to petroleum engineers and geologists.  Unlike other property valuation systems, softPetroleum AppraiserÔ  was designed to work directly with corporate historical data as well as traditional commercial data sources.  softPetroleum AppraiserÔ  also provides tools for evaluating all reserve categories, not just PDP.  The asset valuation objectives of the system include:

1. rapidly perform decline curve analysis with advanced tools such as:

   automatic interpretation mode  where the system makes an initial interpretation by (1) selecting the period of production history where the data is reflective of the well's expected future performance, (2) determining which production forecast model is the most appropriate for the given data, (3) finding the best fit of the selected data, and (4) determining the point at which exponential decline takes effect (if using hyperbolic decline, etc.);

   graphical interpretation mode  where the user can manipulate simple on-screen graphical tools to establish a production forecast.  softPetroleum Appraiser's graphical tools allow the user to define the production forecast for a fluid using 2 click points for exponential decline and 3 click points for hyperbolic decline.  If the user knows the forecast parameters he/she wishes to use, then defining the curve involves only a single mouse click.  The user can also retrieve saved forecast parameters by field and reservoir for use with the single-click curve definition tool.

2. perform gas material balance reserve calculations using P/Z vs. cumulative production plots;

3. provide volumetric reserve estimates and production forecasts at the zone level for wells containing multiple reservoirs;

4. perform sophisticated discounted cash flow calculations using advanced features such as:

   automatic generation of economic assumptions  based on stored historical data for a property including prices, operating expenses, and ownership interest;

   multiple revenue and cost streams  such as NGLs, gathering charges, fuel charges, etc.;

   multiple-owner simultaneous cash flows  driven by the economics controlling the operator's decisions about the property (such as when to abandon, etc.);

   ownership changes  during the forecast period such as reversions;

   complex pricing and operating expense forecasts;  and

   unlimited number of investments  scheduled by the user during the forecast period;

5. generate sophisticated summaries of results for groups of properties;

6. generate average (type) curves from the production histories of a group of wells;

7. provide a "reserves calculator" which allows the user to solve for unknown projection parameters such as initial production rate or decline rate, etc. given the remaining reserves and other curve parameters;

8. provide access to other data such as well events including recompletions, pump changes, etc., through the softPetroleum Enterprise data layer.