Glossary of terms used on this siteThere are 83 entries in this glossary.
|Tangible Investment Credit:
That part of the total capital investment (CAPEX) that returns as a revenue. The tangible assets all have a positive money value less depreciation: Tangible Investment Credit = Tangible Investment * Depreciation Rate
Tangible part of the capital investment (CAPEX). It is the product of the tangible ratio and the total capital investment less the cost of the dry wells: Tangible Investment = (Total Capital Investment - Cost of the Dry Wells) * (Tangible Ratio) The total cost of the dry wells drilled during the exploration-development and production phases will be subtracted from the total capital investment to calculate its tangible part.
Percentage of the material asset that is recoverable and therefore continues to have a material value minus depreciation at the end of the project period. During the first few years of the project, it is estimated to be about 30%, because of the maximum amount of intangible (non-recoverable) assets spent during that period of time. After the main period of intangible investment, such as all sorts of services, cementing, perforation, acidizing, etc., most of what is done in the field will be a part of the tangible investment, hence making the tangible ratio about 70%.