Nexen has outfitted its drilling department with numerous licenses to use the unique software, which plays a key role in improving many aspects of the well construction process through probabilistic cost and time estimating, risk analysis, option selection and planning. Nexen has already put this tool to use on exploration projects in Colombia and Equatorial Guinea in addition to a 120 well Sag D development in Northern Alberta.
Peak's staff has been training Nexenıs engineers in the use of the software, a probabilistic approach to estimating well costs, and will continue to provide engineering support as needed.
P1 uses Monte-Carlo probabilistic simulation techniques to deliver a realistic representation of the spread of possible time/cost outcomes from well activities. P1 and its attendant expert process has been shown historically to aid in dramatically lifting operator performance and to reduce costs through adding insight to all stages of the well delivery and well planning processes.
P1 has proved to be a highly popular product with operators such as Shell, Petro-Canada (formerly Veba), Talisman, Enterprise Oil, BG, Petronas, Amerada Hess, Kerr-McGee and DNO Heather. Peakıs conservative estimates suggest that $200,000 can be saved on the development of each well by the deployment of P1.
Peak Vice President Michael Williams said: "Nexen is one of Canadaıs largest and most important independent operators, and we are delighted that they have joined the growing number of companies internationally who recognize the huge benefits of P1 as a highly effective cost-saving and well planning tool. It shows their commitment to improving well construction performance.
"Our activities have expanded into Argentina, Brazil, Trinidad, Bolivia, Mexico and Canada as well as throughout the USA. We anticipate that the contact with Nexen will strengthen our position in the Canadian market and we expect it to create even further opportunities there."
Brad Muir, Nexenıs General Manager, International Drilling and Completions says, "The Peak Group's software should improve our evaluation of opportunities in the international jurisdictions we operate in. The Peak P1 and C1 tools provide a consistent methodology for assessing and understanding well related risks and an effective template for communicating those risks to all levels of management within our Company."
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