| Risk |  |
WellSpring allows you to calculate risk on individual wells, or on entire projects through the risk settings. Let's look at a very simple example of an exploration prospect with 2bcf of reserves, and $1 million in capex. The well is shown below run without any risk.
The quick summary report shows the reserves and BT cash of $9.5 million.
To apply a 50% chance of success to this well, we first enter in a Ps (probability of success) on the well. Highlight the well, and click on the risk settings.
Calculate the project
Note the modified results:
Note that the entire production forecast is reduced by the risk factor:
Refer to the following sections for more detail and options around the Risking functionality in WellSpring.
