Definition - What does Ultimate Recovery mean?
Ultimate Recovery, also known as Estimated Ultimate Recovery (EUR), is the total ultimate estimated recovery of oil or gas from a reservoir rock by the end of its producing life. These estimated recoverable values from a reservoir are generally approximate values derived from various mathematical models and units depending on the study being conducted. E&P organizations must factor ultimate recovery in order for the production project to be viable and profitable.
Petropedia explains Ultimate Recovery
The Ultimate Recovery or Estimated Ultimate Recovery (EUR) value represents the rough possible quantity of hydrocarbons recoverable from an oil well. These values help decision makers to decide whether the project would be economically viable or not for the E&P organization. Thus based on the EUR figures and certain other parameters, the organization can decide whether they should invest into the development of an oil or gas well on a particular hydrocarbon reservoir on which studies are being conducted. During project execution phase in the oil and gas E&P business, one important parameter check needs to be performed, i.e., the drilling project should meet an acceptable estimated ultimate recovery (EUR) threshold value in order for the well drilling to proceed.