| Capital Expenditure |  |
Capital expenditure can be specified at any asset (well or facility).
Operating costs can be fixed or variable, and are based on an effective date.
Operating costs can be added from the Network tab by selecting the Capital URL link, or via the Data tab:
From the Data tab:
Selecting Capital from any of these routes will produce the dialog below.
For each asset, you can add as many capital items as you want. For example yo could have 4 different capital items with the same depreciation schedule.
Effective Date
Enter the month and the year of the expenditure. If you move the asset in time (via a Drilling Program ), the capital will shift as well. You can flag it as "Fixed Date" (see below) if you do not want the capital item to be moved.
fn - Will pop up the function editor to specify capital as a function of WellSpring variables (See User Defined Functions under Advanced Topics)
Repeat # Times
This parameter is for repeated capital, and must be used in conjunction with "Repeat Every (mo)" below. For example, if you have a value of 10 for the amount and 12 in the "Repeat Every (mo)" column, then $10,000 of this capital item will occur once per year (every 12 months) for 10 years.
Repeat Every (mo)
This parameter is for repeated capital, and must be used in conjunction with "Repeat # Times" above. For example, if you have a value of 10 in the "Repeat # Times" field and 6 in this field, then $10,000 of this capital item will occur twice per year (every 6 months) for 25 years (=50/2).
Capital Type
This allows categorisation of capital to provide breakdown of phased capital and, through the depreciation defined for each capital type (see Capital Definitions), determines the depreciation calculation method which will impact the tax calculation.
Fixed Date
Check this if you do not want your capital shifted when you shift the asset in time. See Moving Assets in time for detail on shifting assets.
Exposed
Check this to define a capital item as exposed. Exposed capital will not be multiplied by the probability of success (Ps) when risking calculations are applied. See Ps Vs Po (Exposed Capital) for more detail.
L B H Flags (low base high)
These flags can be used for inputting different capital for risk and sensitivity. You could put in three duplicate capital entries one marked L, one marked B and one marked H. When you run with different risk settings, you will get only one of the three capital items.
See Risk for more detail.
Pool Only
Capital marked as "Pool Only" is a non-cash capital expense, and will add to the capital pool and used in the depreciation deductions for tax.
Abandon
Capital marked as abandonment will ignore the date entered, and be spent when the economic limit is reached for the asset. Abandon Delay allows you to specify a delay on this expenditure.
Useful Life
Used for depreciation calculation