##### Why won’t my production upload into Drillnomics?

Your file is likely in the wrong format. If you are uploading via Excel, you must use a specific cell structure. Please see our file uploads section. Additionally, when you download a file from DrillingInfo or IHS, you should avoid opening it. Instead, drag or save it directly to your Desktop. If you still have questions, please contact us.

##### Can you give a quick overview of the Hyperbolic Variables used in building a decline curve?

The mathematical equation defining hyperbolic decline has three variables: the initial production rate, the Initial Decline Rate, and the hyperbolic exponent (the B factor). The Initial Rate represents the initial daily production volume (MCFPD or BOPD). The B Factor determines the initial steepness of the decline curve (is generally a number between .5 and 1.4). The Initial Decline Rate controls the rate at which the type curve declines (is generally between 40% and 85%).

##### How are Drillnomics EURs calculated?

Drillnomics uses proprietary calculations that closely relate to the B Factor, Initial Decline Rate, and Initial Rate used in the Arps decline curve equation. The purpose of these proprietary calculations is to enable the user to quickly and easily visually fit a curve to well production data. Drillnomics takes a visually fit curve and calculates the production from that curve.

##### What is a B factor and a “B” factor?

A B factor is a hyperbolic exponent used in the Arps decline curve equation to model either hyperbolic or exponential production decline, depending on the reservoir and production characteristics. Exponential decline using the B factor value of zero is exhibited by a straight line on a semi-log graph, whereas hyperbolic decline with B values ranging from 0.5 to 1.4 represent a decline that is characterized by an early steep drop followed by flattening, which is typical of tight gas formations including shale. The Drillnomics “B” factor is a similar representation of the B factor in Arps and will enable the user to easily model the hyperbolic section of a decline curve when fitting visually to well production data.

##### What is Decline Rate and Di?

The mathematical equation defining hyperbolic decline has three constants: the initial production rate, the initial decline rate (Di), and the hyperbolic exponent (the B factor). The decline rate is not a constant, but changes with time, since the data plot as a curve on semi-log paper. The hyperbolic exponent is the rate of change of the decline rate with respect to time, or the second derivative of production rate with respect to time. The Drillnomics Di factor is a similar representation of the Initial Decline Rate in Arps and in conjunction with the “B” factor will enable the user to easily model the hyperbolic section of a decline curve when fitting visually to well production data.

##### What is the hyperbolic end date?

The hyperbolic end date is the date at which the wells decline becomes exponential rather than hyperbolic. This is usually between 60 and 100 months. This number is typically not very important when it comes to its effect on the overall economics of a well, however you may want to make sure the trend of the well is smooth and does not have any abrupt changes at end hyperbolic month by adjusting the end month and exponential decline numbers.

##### What is the Exponential Decline Rate /Terminal Decline Rate?

The mathematical equation defining exponential decline has two constants, the initial production rate and the “decline rate.” The decline rate is the rate of change of production with respect to time and, for exponential decline, is constant for all time. The “Terminal Decline Rate” in Drillnomics, represents the decline rate after flush production has occurred and is usually between 5% and 10%.

##### How should I input Net Revenue Interest and Working Interest when evaluating a deal involving Working Interest?

When you are looking to evaluate a Working Interest, you should input the Net Revenue Interest percentage in the Net Production section under the Financial Analysis tab. You should input the total Working Interest percentage being evaluated in the Net Cash Flow section under the Financial Analysis tab. For example, if you are evaluating a 10% Working Interest in a lease and the only burden is a 15% landowner’s royalty interest, you would input 8.5% for Net Revenue Interest, and 10% for Working Interest

##### Can I delete specific wells after I upload them?

Yes. If you click on the arrow to the right of the Well Data Section under the Production Analysis tab, you can uncheck the wells you wish to exclude from analysis

##### Is data I input under the Overview tab used in calculations?

The data you input in the Seller Information, Property Information, Mineral Summary, Production Information and Asking Price sections are for your own reference and do not influence the software’s calculations. Please note, however, that the Overview tab is where you choose whether to create a Producing or Non-Producing Property Mode, and this selection will impact the ensuing evaluation.

##### What is the NGL Yield?

NGL Yield represents the number of barrels of Natural Gas Liquids in every 1000 cubic feet of gas. In most oily/wet gas areas, this number is usually around 0.1.

##### What is Gas Shrinkage Factor?

Gas Shrinkage Factor represents the shrinkage that results from processing gas after it has been extracted. Shrinkage can vary, but 20% is typical.

##### What is the Oil, Gas and NGL Differential?

The differential represents the difference between the price you input as the Oil, Gas or NGL Price (usually WTI, WSC or Brent) and the actual price you would earn based on the well’s location and hydrocarbon quality.

##### When and how should I input Expenses/Costs into the Net Cashflow section under the Financial Analysis Tab?

You should only input expenses/costs into the Net Cashflow section when you are evaluating an interest subject to expenses/costs (e.g., a Working Interest). You should input the entirety of the expenses/costs that ALL the working interest owners are responsible for–NOT the divided share of the WI expense/cost attributed to the fractional interest you are evaluating.

##### How does the Buildout Model Work?

The Buildout Model allows you to customize your analysis by valuing the present value of cash flows from any number wells drilled at varying times in the future.

##### When I click “update,” the data does not appear to update. Why?

For the calculations to work correctly, you should input data and hit update after each section in the order they appear. Jumping forward and backward between sections could mess up the calculations. If there is a fatal mistake, hitting the refresh button often corrects the issue

##### Why won’t my Excel File Upload?

It is important that you input data into Excel in the exact structure found in the “Excel Upload Template.” You can download this template from the FAQ section of our website. Remember to maintain the date structure found in the template and make sure that the dates ascend in monthly increments. Check to ensure that each cell within a column has data, and that there are no empty rows between wells that you are uploading.