Abstract: Value Map Methodology for Appraising "Settled" Producing Properties
Sidney S. Moran
Seventy five percent of the oil wells in the United States are stripper wells producing an average of slightly over two barrels per day. Stripper properties are often sold by major companies to independents or by one independent to another. Although computer programs are available to analyze property values, value maps can be constructed which combine the technical aspects of a property with the economic projections of the evaluator. These maps permit very rapid property evaluation while revealing relationships among the parameters affecting property values that would not be apparent from a number of individual computer runs. In addition to oil properties, many late stage gas properties can also be analyzed using the value map methodology.
Geologists having the necessary skills to appraise stripper properties benefit both through potential consulting opportunities, and through the opportunity to invest personally in producing properties, which can offer superior rates of return.
AAPG Search and Discovery Article #90957©1995 AAPG Mid-Continent Section Meeting, Tulsa, Oklahoma