UC-017
AFE Variance Prediction & Cost Control
Monitors daily AFE spend, forecasting cost overruns well before they impact the budget.
TBDBuild Duration
XXXXIndicative ROI
XXXXBuild Cost
XXXXValue
The Challenge
Industry-average cost overruns run 15-25% on drilling programmes. Finance and wells teams typically discover an overrun only after the money is spent.
How It Works
- Ingests daily cost accruals, AFE cost-code breakdowns and historical AFE-versus-actual data.
- Compares the live cost trajectory against the AFE and against historical offset wells.
- Issues a predictive alert with scenarios when the trajectory signals an overrun.
What It Removes
- Month-end discovery of a well already overspent
- Overruns visible only after the money is spent
- Cost decisions taken at $500K instead of $50K
Input Data RequirementsReal-time daily cost accruals, AFE cost-code breakdowns, historical AFE-versus-actual data, offset well costs
Output FormatPredictive overrun alerts with scenarios and live cost-versus-AFE trajectory
“I find out a well is drifting while it is still a $50K conversation, not a $500K one.”