I need answers ASAP 1.18 Your company (MPEX) is considering drilling an infill well....
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1.18 Your company (MPEX) is considering drilling an infill well. a) The following economics have been run on the infill well. Based solely on the undiscounted net cash flow would you recommend drilling the well? b) After discussion with the geologists and the reservoir engineering group, the consensus is the infill well will accelerate the production from the field, but it will also drain some of the oil that would have been produced from existing wells. The following economic analyses have been run for the company with and without the infill well. Calculate the yearly undiscounted net cash flow for the project considering the drainage from offset wells (including Time 0). Based solely on the undiscounted net cash flow, would you recommend drilling the well
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