This form is used to document the estimated total costs for tangibles and intangibles as it relates to the exploration and/or development of oil, gas, and minerals work project. It also provides formal approval for the act or process of paying out or disbursement.
Kentucky Cost Estimate and Authorization For Expenditure — "AFE" is a financial document used in the oil and gas industry to plan, estimate, and authorize expenses related to drilling or production operations. It serves as a formal request for funds and provides a breakdown of costs associated with a specific project or task. The Kentucky AFE is an essential tool for budgeting and financial control purposes. It ensures that all expenditures are justified, tracked, and approved by the appropriate parties. Companies use Ages to ensure compliance with internal policies and to gain operational clarity by outlining the financial implications of a proposed project. Types of Kentucky Cost Estimate and Authorization For Expenditure — "AFE": 1. Exploration AFE: These AFEs are generated when a company plans to explore a new oil or gas reservoir in Kentucky. It includes costs related to seismic surveys, well testing, geological studies, and drilling exploration wells. 2. Drilling AFE: Once exploration has been completed successfully, and a decision is made to drill a well, a drilling AFE is prepared. It outlines the anticipated costs for drilling the well, including rig rental, drilling equipment, personnel, and material expenses. 3. Completion AFE: After drilling is complete, and the well bore is in place, a completion AFE is prepared to estimate the costs of completing the well. This includes activities such as casing installation, cementing, perforation, and hydraulic fracturing. 4. Production AFE: Once a well is successfully completed, production Ages are created to estimate expenses associated with production operations. This includes costs related to maintenance, repair, well optimization, equipment upgrades, and ongoing operational expenses. 5. Work over AFE: In cases where existing wells require maintenance, repair, or intervention to restore or enhance production, work over Ages are generated. They outline the costs associated with well work over activities, such as well bore clean outs, remedial cementing, corrosion control, and artificial lift installation. Kentucky Cost Estimate and Authorization For Expenditure — "AFE" is a vital financial tool that ensures effective planning, allocation, and control of resources within the oil and gas industry. Without these detailed estimates and authorizations, companies may struggle to maintain financial discipline and efficiently manage their operations.Kentucky Cost Estimate and Authorization For Expenditure — "AFE" is a financial document used in the oil and gas industry to plan, estimate, and authorize expenses related to drilling or production operations. It serves as a formal request for funds and provides a breakdown of costs associated with a specific project or task. The Kentucky AFE is an essential tool for budgeting and financial control purposes. It ensures that all expenditures are justified, tracked, and approved by the appropriate parties. Companies use Ages to ensure compliance with internal policies and to gain operational clarity by outlining the financial implications of a proposed project. Types of Kentucky Cost Estimate and Authorization For Expenditure — "AFE": 1. Exploration AFE: These AFEs are generated when a company plans to explore a new oil or gas reservoir in Kentucky. It includes costs related to seismic surveys, well testing, geological studies, and drilling exploration wells. 2. Drilling AFE: Once exploration has been completed successfully, and a decision is made to drill a well, a drilling AFE is prepared. It outlines the anticipated costs for drilling the well, including rig rental, drilling equipment, personnel, and material expenses. 3. Completion AFE: After drilling is complete, and the well bore is in place, a completion AFE is prepared to estimate the costs of completing the well. This includes activities such as casing installation, cementing, perforation, and hydraulic fracturing. 4. Production AFE: Once a well is successfully completed, production Ages are created to estimate expenses associated with production operations. This includes costs related to maintenance, repair, well optimization, equipment upgrades, and ongoing operational expenses. 5. Work over AFE: In cases where existing wells require maintenance, repair, or intervention to restore or enhance production, work over Ages are generated. They outline the costs associated with well work over activities, such as well bore clean outs, remedial cementing, corrosion control, and artificial lift installation. Kentucky Cost Estimate and Authorization For Expenditure — "AFE" is a vital financial tool that ensures effective planning, allocation, and control of resources within the oil and gas industry. Without these detailed estimates and authorizations, companies may struggle to maintain financial discipline and efficiently manage their operations.
