In this week’s Lunch & Learn Well Delivery Q&A. we’re talking about the improvements you can expect to see when using the SigmaFlow solution. By optimizing the resources and time spent with SigmaFlow’s Well Delivery solution, oil and gas companies can lower unnecessary costs and avoid lost revenue in multiple stages of the drilling process.
This week’s question is:
Can you outline potential savings we could see when using the SigmaFlow solution?
We believe companies will see improvements in time, costs and resources in these three areas: Planning & Permitting; Drilling & Completions, and Production processes such as workovers and well abandonment.
Planning & Permitting – SigmaFlow provides the ability to work at least twice as many wells with the same amount of resources. Our solution accomplishes this by improving your cycle time by 50% and removing the ‘white space’ between tasks. A savings example could look like this, currently in your company it may take 50 people with a payroll cost of $5M to complete 100 permits per year. With SigmaFlow’s Well Delivery Solution the process time can be reduced to less than half which allows the same number of people to now complete 200 permits. The savings is a cost avoidance of $5M because the department no longer needed to double in size to accommodate the doubling of permits.
Drilling & Completions – A time study by a customer showed that improved scheduling and process management enabled them to reduce non-value added time and save enough days in a year to drill a ‘free’ Well. For many companies this can be a savings of $5M per drilling rig.
Cash Flow – What is the average delay that your company is experiencing from Rig Down to first production? If your wells are generating an initial revenue stream of $50,000 per day and you can accelerate first production by 60 days, then you have improved annual cash flows by $3M per well.
Workover Process – A customer did a report on the value of using SigmaFlow in a Workover Process. They estimated that by running the SigmaFlow process management solution it saved 3-5 days of time at 50 barrels per day production. They also estimated and determined that $27,000 -$45,000 per month of revenue was lost in undetected optimization.
In next week’s Lunch & Learn Q&A Blog, we’ll be answering the question: What does it mean when SigmaFlow says it is a solution for ‘Record of Time’?
Previous Well Delivery Q&A Blog: Can SigmaFlow Coexist with Well data repositories? Is it Relevant for Basin & Shale? What is the Deployment Process?
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