Lab Assignment Coversheet This sheet must be included with your work submission Required Academic Integrity Statement Texas A M University Policy Statement Academic Integrity Statement All syllabi shall contain a section that states the Aggie Honor Code and refers the student to the Honor Council Rules and Procedures on the web Aggie Honor Code An Aggie does not lie cheat or steal or tolerate those who do Upon accepting admission to Texas A M University a student immediately assumes a commitment to uphold the Honor Code to accept responsibility for learning and to follow the philosophy and rules of the Honor System Students will be required to state their commitment on examinations research papers and other academic work Ignorance of the rules does not exclude any member of the Texas A M University community from the requirements or the processes of the Honor System For additional information please visit www tamu edu aggiehonor On all course work assignments and examinations at Texas A M University the following Honor Pledge shall be preprinted and signed by the student On my honor as an Aggie I have neither given nor received unauthorized aid on this academic work Aggie Code of Honor An Aggie does not lie cheat or steal or tolerate those who do Required Academic Integrity Statement On my honor as an Aggie I have neither given nor received unauthorized aid on this academic work Evan Situ Print your name Evan Situ Your signature Coursework Copyright Statement Texas A M University Policy Statement The handouts used in this course are copyrighted By handouts this means all materials generated for this class which include but are not limited to syllabi quizzes exams lab problems in class materials review sheets and additional problem sets Because these materials are copyrighted you do not have the right to copy them unless you are expressly granted permission As commonly defined plagiarism consists of passing off as one s own the ideas words writings etc that belong to another In accordance with this definition you are committing plagiarism if you copy the work of another person and turn it in as your own even if you should have the permission of that person Plagiarism is one of the worst academic sins for the plagiarist destroys the trust among colleagues without which research cannot be safely communicated If you have any questions about plagiarism and or copying please consult the latest issue of the Texas A M University Student Rules under the section Scholastic Dishonesty Lab Assignment Grading Rubric This sheet must be included with your work submission Criteria Points Adherence to the SPE Style Guide Petroleum Engineering Handbook 10 Grammar Professionalism 5 Completeness of Literature Review 15 Completeness of Introduction 10 Completeness of Methodology 15 Completeness of Discussion 15 Completeness of Conclusions 10 Completeness of References 10 Completeness of Nomenclature 10 Final Grade 100 Literature Review The purpose of this lab was to understand the effective utilization of the secant method and the false position method The false position method is an alternative approach that can be used to join f x l and f xu by a straight line The straight line replacement of the actual curve indicates a false position of the root In other words the intersection of the straight line and the x axis represents an improved estimate of the root To calculate for the improved estimate of the root Eq 1 was effectively utilized x f x l f u Eq 1 f x u x l x u x r x u Furthermore the secant method is another method that is similar to the false position method It can be another approach that can be used to join f xi and f xi 1 by a straight line Unlike the false position method the secant method replaces the vales in strict sequence with the value xi 1 replacing xi and xi replacing xi 1 During the process of effectively using the secant method multiple values can lie on the same side of the root But at certain cases values can diverge from the actual root or solution To calculate the improved estimate of the root with this particular method Eq 2 was effectively utilized Figure 1 demonstrates the different scenarios during the utilization process of the false position method and the secant method Fig 1 False Position and Secant Methods x x x f i 1 f i Eq 2 f i x i 1 x i x i 1 x i Introduction The oil well under investigation in this lab is drilled for an initial cost of 15 million and is forecasted to for 30 years of production with initial revenue of 30 million decreasing to 3 million and with 1 million in annual expenses After 30 years an oil and gas company have plans to sell the oil for 5 million dollars With all the necessary given information the interest rate necessary to make the present value ration PVR equal to 1 for the well must be determined by the effective utilization of the secant and the false position methods through Visual Basics for Application Figure 2 demonstrates the regular well cash flow and the modified well cash flow of the oil well under extreme scrutiny Fig 2 Regular and Modified Well Cash Flow Diagrams Methodology Before executing the procedures of this lab these helpful equations for calculating the present value of the future value the present value of the annuity the present value of the linear gradient the net present value and the present worth cost and the present value ratio were kept in mind P F 1 i n Eq 3 1 i n 1 Eq 4 P A A G 1 i n i n 1 1 Eq 5 i 1 i n 1 P G 1 i n i n 1 Eq 6 i 2 1 i n CF j 1 i j n NPV Eq 7 j 1 NPV P Eq 3 Eq 4 Eq 6 Eq 8 CF j 1 i j n PWC Eq 9 j 1 PWC P Eq 4 Eq 6 Eq 10 PVR NPV Eq 11 PWC Now here were the steps to complete the lab successfully First double precision VBA functions for Eq 3 Eq 4 and Eq 6 with interest rate i number of periods n and the given value F A or G as inputs were concocted Second another double precision VBA function was made for the NPV equation with P F A s G s i and n as inputs Third a double precision VBA function was made for the Present Worth Cost equation with P A s G s I and n as inputs Fourth the the PVR was plotted over the range of intersection the intersection of the PVR function and the y 1 equation Fifth a solver was utilized to determine the rate at which PVR is equal to 1 Finally the absolute value of 1 PVR i was plotted as a function of iteration for each root finding method A semi log plot was used with the y axis logarithmic The VBA codes below gives a clear idea of the procedures …
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