Definition - What does Appraisal mean?
Appraisal is the process by which appraisal wells are drilled so as to understand the potential of a hydrocarbon reservoir before commercial production from a well or gas field commences. Appraisal is an important step in the chronology of asset development for the oil and gas activities. In the chronology of asset development program, the appraisal drilling in performed before starting the commercial production. Appraisal wells can be either vertical or deviated.
Petropedia explains Appraisal
The appraisal of a field is done by drilling appraisal wells on the discovered field. The reasons of performing appraisal on the field are as follows:
- It helps in appraising the discovery made by the geologists and evaluates the potential of the discovered hydrocarbon reservoir such as hydrocarbon formations beneath, its structure, rock properties, etc.
- Appraisal drilling helps in appraising the formation characteristics to maximum extent to understand the reservoir in terms of properties, liquid flow, volume and potential.
- It helps in evaluating and confirming the commercial aspects of the discovery, developing field economics and field development plan.
In any asset development program, there are certain procedural steps that follow one another. Below are the phases in chronological order of the asset development:
- Field Appraisal
- Field Development
- Field Abandonment
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