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.
North Dakota Cost Estimate and Authorization For Expenditure (AFE) is a crucial document used in the oil and gas industry. It is a detailed financial plan that outlines the estimated costs and authorizes the spending for various operations related to drilling, completion, and production activities in North Dakota. Keywords: North Dakota, Cost Estimate, Authorization For Expenditure, AFE, oil and gas industry, financial plan, estimated costs, drilling, completion, production activities. Types of North Dakota Cost Estimate and Authorization For Expenditure — "AFE": 1. Exploration AFE: This type of AFE focuses on estimating the costs associated with exploring and identifying new oil and gas reserves in North Dakota. It includes expenses like seismic surveys, geophysical evaluation, lease acquisition, and potential drilling costs. 2. Development AFE: Once the exploration phase is complete and viable reserves are identified, the development AFE comes into play. It outlines the estimated costs for drilling and completing wells, installing production equipment, and establishing the infrastructure necessary for oil and gas production in North Dakota. 3. Work over AFE: Work overs are necessary to maintain and optimize production from existing wells. This type of AFE covers the costs associated with repairing, refurbishing, or enhancing the productivity of wells that are already in operation in North Dakota. It includes activities like stimulation treatments, artificial lift installations, and well bore clean outs. 4. Abandonment AFE: When a well reaches the end of its productive life or is deemed non-commercial, it must be properly plugged and abandoned. The abandonment AFE provides a cost estimate for the decommissioning of wells, including well plugging, surface restoration, and environmental cleanup measures, ensuring compliance with regulatory requirements in North Dakota. 5. Facilities AFE: Facilities AFE focuses on estimating the costs related to the construction, modification, or expansion of infrastructure and facilities required to support oil and gas production in North Dakota. It includes expenses for pipelines, storage tanks, separators, dehydration units, compression stations, and other necessary equipment. In summary, North Dakota Cost Estimate and Authorization For Expenditure (AFE) is a comprehensive financial plan that allows oil and gas companies to estimate and authorize expenditures for various activities related to exploration, development, work overs, abandonment, and facilities. It plays a vital role in budgeting, cost control, and project management within the oil and gas industry in North Dakota.North Dakota Cost Estimate and Authorization For Expenditure (AFE) is a crucial document used in the oil and gas industry. It is a detailed financial plan that outlines the estimated costs and authorizes the spending for various operations related to drilling, completion, and production activities in North Dakota. Keywords: North Dakota, Cost Estimate, Authorization For Expenditure, AFE, oil and gas industry, financial plan, estimated costs, drilling, completion, production activities. Types of North Dakota Cost Estimate and Authorization For Expenditure — "AFE": 1. Exploration AFE: This type of AFE focuses on estimating the costs associated with exploring and identifying new oil and gas reserves in North Dakota. It includes expenses like seismic surveys, geophysical evaluation, lease acquisition, and potential drilling costs. 2. Development AFE: Once the exploration phase is complete and viable reserves are identified, the development AFE comes into play. It outlines the estimated costs for drilling and completing wells, installing production equipment, and establishing the infrastructure necessary for oil and gas production in North Dakota. 3. Work over AFE: Work overs are necessary to maintain and optimize production from existing wells. This type of AFE covers the costs associated with repairing, refurbishing, or enhancing the productivity of wells that are already in operation in North Dakota. It includes activities like stimulation treatments, artificial lift installations, and well bore clean outs. 4. Abandonment AFE: When a well reaches the end of its productive life or is deemed non-commercial, it must be properly plugged and abandoned. The abandonment AFE provides a cost estimate for the decommissioning of wells, including well plugging, surface restoration, and environmental cleanup measures, ensuring compliance with regulatory requirements in North Dakota. 5. Facilities AFE: Facilities AFE focuses on estimating the costs related to the construction, modification, or expansion of infrastructure and facilities required to support oil and gas production in North Dakota. It includes expenses for pipelines, storage tanks, separators, dehydration units, compression stations, and other necessary equipment. In summary, North Dakota Cost Estimate and Authorization For Expenditure (AFE) is a comprehensive financial plan that allows oil and gas companies to estimate and authorize expenditures for various activities related to exploration, development, work overs, abandonment, and facilities. It plays a vital role in budgeting, cost control, and project management within the oil and gas industry in North Dakota.
