Planning Costs

The costs required to plan a well properly are insignificant in comparison to the actual drilling costs. In many cases, less than $1,000 is spent in planning a $1 million well. This represents Vw of 1% of the well costs.

Flow Path Drilling Mud
Fig. 1-2 Flow path for weil planning

Unfortunately, many historical instances can be used to demonstrate that well planning costs were sacrificed or avoided in an effort to be cost conscious. The end result often is a final well cost that exceeds the amount required to drill the well if proper planning had been exercised. Perhaps the most common attempted shortcut is to minimize data collection work. Although good data can normally be obtained for less than $2,000-$3.000 per prospect, many well plans are generated without the knowledge of possible drilling problems. This lack of expenditure in the early stages of (he planning process almost always results in higher-than-anticipated drilling costs.

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