On-Line Postgraduate Programme Upstream Oil and Gas Operations

By the conclusion of the specified learning and development activities, delegates will be able to
Demonstrate an understanding of the oil and gas industrial and the activities of each subsector
Demonstrate an awareness of the salient issues associated with the development of the United States oil and gas industry, as a mark car to International oil and gas exploration developments and it mining operations;
Address the geological issues relating to the origin, exploration and production of oil and gas;
Outline the methods of production, employed in the oil and gas industry;
Describe the methods of exploration generally used within the oil and gas industry;
Explain the contractual issues that are associated with oil, gas and mineral lease;
Address problems and issues associated with upstream oil and gas operation.
Outliner the role of finance and accounting in an Oil and Gas Organisations
Demonstrate an appreciation of financial reporting policies and practices applicable in Oil and Gas Industry
Distinguish between the different types of wells
Distinguish between natural and artificial lifts, in oil and gas production
Demonstrate a working knowledge of Amortization, with particular reference to the oil and gas industry
Work through examples of Amortization of exploration and development costs of proved developed reserves
Accurately account for ‘Disposition’ of capitalized costs, in reference to the impairment of unproved properties
Appropriately address Disposition of capitalized costs from the surrender or abandonment of property
Distinguish between 3D and 4D Seismic
Explain, with examples, Overriding Royalty Interests (ORI)
Distinguish between Mineral Rights, Mineral Interests and Fee Interests
Discuss, with examples, the benefits and drawbacks of nonworking interest
Distinguish between Non-drilling and Drilling Costs
Appropriately apportion costs to non-drilling and drilling operations, respectively
Explain the basic principles of Successful Efforts Accounting in Oil and Gas
Demonstrate mastery of the concepts and issues associated with exploration and drilling operation
Explain, with minor omissions, the processes involved in oil and gas acquisition, exploration and mining.

Module 1 Upstream Oil and Gas Operations
Introducing the Oil And Gas Industry
Brief History of the U.S. Oil and Gas Industry
Origin of Petroleum
Exploration methods and procedures
3-D Seismic
4-D Seismic
Acquisition of mineral interests in property
Mineral Rights
Mineral Interests
Fee Interests
Overriding Royalty Interests (ORI)
Retained ORI production payment Interest (PPI)
Dutch Carved-out production payment
Carved-out net profits interest created from working interest
Net profits interest created from mineral interest
Oil, Gas and Mineral Lease Provisions
Lease bonuses
Royalty provision
Primary term
Delay Rental Payment
Shut-In payment
Right to Assign Interest
Right to free use of resources for lease operations
Option payment
Offset Clause
Addressing problems and issues associated with upstream oil and gas operation.
Anticline

Module 2 Introduction to Oil and Gas Accounting
Oil and Gas Drilling Operations
BOP (blowout preventer)
Bottom-hole pressure
Bottom-hole pump
Drill string
Rat hole
Mouse hole
Drilling platform
Drilling rig
Proved area
Drill stem test
Derek and Derek Hands
Cracking
Field
Christmas tree
Sedimentary rock
Seismic exploration
Development well Flowing well
Injection well
Offset well
Stratigraphic Well
Stratigraphic Test Well or Exploratory well
Service well
Dry hole
Dual completion
Dry natural gas natural and artificial lifts
Oil and Gas production and Sales
Some State and US Federal Oil and Gas Drilling Regulation
Maximum Efficiency Drilling Rate (MER)
The Concept of Peak Oil
Historical cost accounting methods
Historical Development of accounting methods and current status
Introduction to successful efforts accounting
Chart accounts for successful efforts company
Oil and Gas subsectors – Upstream, Mid-Stream and Downstream
Horizontal, Vertical and Full Integration within the Oil and Gas Industry.
Addressing Problems associated with Oil and Gas Accounting

Module 3 - Nondrilling Exploration Costs - Successful Efforts
Introduction to Full Cost (FC) Accounting
Distinguishing between Non-drilling and Drilling Costs
Cost of Identifying areas that might warrant exploration
Cost of topographical, geological and geophysical studies
Cost of carrying and retaining undeveloped properties
Dry hole contribution
Cost of drilling and equipping exploratory well
Cost of drilling exploratory type Stratigraphic test well
Successful Efforts– Exploration Cost
Accounts for a full cost company
G&G costs
Reconnaissance survey
Detailed Survey
Shooting Rights
Obtaining G & G Permits
Exchanging C & G Studies for Property Interes

Module 4 Acquisition Cost of Unproved Property - Successful Efforts
Carrying and retaining costs
Delayed Rental property Taxes
Legal cost for title defense
Clerical and record-keeping costs
Test-well contributions
Dry hole contribution
Bottom-hole contribution
Support equipment and facilities
Problems
Offshore and International operations
Purchase in fee (Fee Purchase)
Internal costs
Options to lease
Delinquent taxes and mortgage payment

Module 5 Acquisition Costs of Unproved Property - Successful Efforts
Successful Efforts Acquisition Costs
Internal Costs
Options to lease
Delinquent tax and Mortgage Payments
Top Leasing
Amortization
Amortization of exploration and development costs of proved developed reserves
Impairment
Disposition of capitalized costs – impairment of unproved properties
Disposition of capitalized costs – surrender or abandonment of property
Post balance sheet events
Disposition of capitalized costs – reclassification of an unproved property
Land department
Addressing Issues and Problems in unproved property acquisition costs