Modular Production Equipment - Cost Savings


 

 

Examples of Wellhead and Compressor Station Savings

 

Formula (applicable to oil and natural gas)

Production Rate x Current Market Price = Revenue Per Day

Payment Terms (Days) – Installation Time (Days) = Total Days Generating

Total Days Revenue Generating x Revenue Per Day = Total Revenue Before Payment Due

Total Revenue Before Payment – Equipment Cost = Retained Revenue

Examples with natural gas production only - 1 skid only

Production Rate 5 MMSCFD x $2.00 = $10,000 Per Day

30 Day Terms – 1 Day Installation = 29 Days Rev Generating

29 Days x $10,000 Per Day = $290,000 Generated Rev.

$290,000 Generated Rev. - $35,897 Equipment Cost = $254,103 Retained Rev.

In summary, 86% retained earnings after equipment is purchased. Payback is 3.5 days in this example.

Examples with natural gas production only - Total compressor package

Production Rate 70 MMSCFD x $2.00 = $140,000 Per Day

30 Day Terms from equipment started = 30 Days Rev Generating

30 Days x $140,000 Per Day = $4,200,000 Generated Rev.

$4,200,000 Generated Rev. –  $1,000,000 Equipment Cost = $3,200,000 Retained Rev.

In summary, 80% retained earnings after equipment is purchased. Payback is 7 days in this example (5 days when gas price at $2.75).

 

To view our complete product offering, click here.

Please e-mail us at ForumPE.Sales@f-e-t.com.