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Economic Limit

WellSpring by default will terminate the calculation of an asset if it becomes uneconomic.  The Following conditions must be true for a well or facility to go uneconomic:

1. Operating Income (before Capital and Tax) must be negative
2. The “Disable Economic Limit Flag” on the asset must not be set
3. The Asset must have produced or had production pass through it at some point in the calculation
4. The total Downtime must be less than 50%
5. The Rate of Take ( % of Production Potential that is actually produced and not curtailed) must be greater than 90% (Wells Only)
6. A Well must not be in a delay period between two decline segments
7. It must be the second time step of the project (things always go for 1 month)
8. The calculation date must be at least the "number of months to ignore" in your options past the start of the asset. (Set on General Tab, Alt-G)

When a well or facility goes uneconomic, all assets that flow into that well or facility are also disabled.
You may change the number of months after the start date of an asset that the economic limit will be ignored on the Options screen. This is accessible via the Tools menu.

Refer to General Data / Project Data for economic limit options.  Economic limit is set as a Default in the options.  This default can be over-ridden at the project level (General Data). 

Tip: If you have a facility that ramps up over a period of time, ensure that the "number of months to ignore economic limit" is set to a high enough value for the facility to become economic.

You can also run the calculations ignoring the economic limit:




After calculating without the economic limit, and reporting the calculations at the facility level, you can see the length of time required to reach a positive operating income.  You can then use this value to set the "number of months to ignore economic limit" as a default or at the project data.

See also