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PASSA Meeting
February 20 @ 11:30 am - 1:00 pm
FreePASSA Meeting
Tuesday, January 23, 2024
11:30 am – 1:00 pm (lunch provided-free)
San Antonio Petroleum Club
Sign-in Begins at 11:00 am
Guests are welcome: lunch fee is $25
Speaker: Dwayne Purvis – Engineer – 12:10 – 1:00 pm
Topic: Managing the “Zombie Well Apocalypse” and Orphaned Wells
CPE offered: 1 hour.
Program Level: Basic
Prerequisites: None
Advanced Preparation: None
Delivery Method: Group Live
Field of Study: Accounting
NASBA Sponsor Council of Petroleum Accountants Societies, Inc. (COPAS) PO Box 21272, Wichita, KS 67208
Course Description
A New Economic Yardstick for Today’s Late-life Production: Holdback Low-rate, late-life producers figure prominently in the portfolios of most oil companies, but they also create a unique financial trap for their owners. Decades of delayed plugging has accumulated liabilities while production and cash flow have tapered down. Combined these make it possible for cash-flowing properties with a positive present value to be net liability instead of an asset. This presentation explains the unexpected, the dangers it creates, and how to foresee the trap so that the tax-paying public does not end up footing the bill for our former profit centers.
Learning Objectives
- Defining Zombie and Orphan Wells.
- Identifying the issues surrounding these type wells.
- Outline what states and companies are doing to address the situation.
- Update on accounting changes for ARO (Asset Retirement Obligation).
Speaker Bio
Dwayne Purvis, P.E. is a petroleum reservoir engineer offering consulting and advisory services for the oil and gas industry and others engaging the energy transition based on nearly three decades in reservoir engineering and executive leadership as a consultant and operator.
He has led or participated in hundreds of engineering studies over dozens of basins in the United States and abroad and advised on tactical and strategic decisions large and small. Mr. Purvis frequently speaks and writes on issues of shale reservoirs, the energy transition, commodity prices, decline curve analysis, and risk analysis.
He is a registered professional engineer in the state of Texas, member of SPEE, AAPG, SEG, SIPES and an active, 25-year member of SPE. He also recently completed a master’s degree in sustainable energy at Johns Hopkins University.