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What is Workover Economics?
Definition
Workover economics evaluates the financial costs and results of work performed on an existing oil or gas well to restore, maintain, or improve its performance.
Evaluating a workover involves comparing the cost of the work with its financial results, including changes in revenue, operating expenses, and cash flow over time. These comparisons can help determine whether the workover delivered the expected financial benefit and how it affected the well’s overall economics.
The evaluation may consider the original expectations, actual spending, and financial performance before and after the workover.
Practical questions
- What was the total cost of the workover?
- How did the well’s financial performance change after the workover?
- Did the financial benefit justify the workover investment?
- How long might it take to recover the workover cost?
- How do the financial results compare with the original expectations?