Stripper property evaluation through the use of value maps

Low-production stripper wells constitute a substantial fraction of total oil and gas wells in the US. Stripper properties are often sold by major companies to independent producers or by one independent to another. Many such properties can be evaluated by using the property decline rates, along with cost and price estimates, and the purchasers' targeted rates of return. Computer program programs can do the basic analyses, as well as assess the sensitivity of the property value to alternate assumptions. However, value maps can be constructed that provide almost instantaneous evaluation; these value maps also provide sensitivity assessments very quickly, and provide insights about property values that may not be apparent from computer runs. The paper explains the math behind a value map, its use, and insights gained from its use