HEARTLAND.TECH

Tools · Advanced

Advanced Well Valuation Model

The full engine behind our listing analysis. Prices are anchored to the live NYMEX forward curve with mean reversion instead of a flat deck, volumes decline on an Arps curve with uncertain decline, b-factor and uptime, revenue is taken at NRI while costs are taken at working interest, and the package runs to its economic limit — booking the plugging bill when it gets there. Output is a full distribution: NPV, cash-on-cash odds, shut-in date and the middle-50% band.

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The package

Starting WTI (spot)$65.00/bbl

Sets today's deviation from the front of the curve; the model pulls back toward the curve at the fitted reversion speed.

Starting gas (spot)$2.75/mcf

Henry Hub basis; the gas differential above is applied on top.

Model assumptions

Every soft number is yours to set or switch off entirely — price process, operating-cost risk, workovers, plugging liability, horizon, discount rate and path count.

Cost & abandonment assumptions

3 producing wells

These are the softest numbers in the whole model, so they are yours to set. Switch a block off and the model ignores it completely.

Price process
When the P&A bill is charged

Escrow is the default because most small operators set the plugging money aside up front. Switch to the economic-limit treatment if you want the textbook discounted-liability view.

Run it on a real package

Every approved listing carries this same engine pre-loaded with the seller's actual rates, interests and operating expense.