What's Your Well Worth?
Estimate the value of a producing oil or gas well using industry multiples and simplified discounted cash flow (DCF). Built for A&D teams, mineral owners, and operators evaluating acquisitions or divestitures.
Production Data
Economics
Valuation Method
DCF Value (PV-10)
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Discounted cash flow at 10%
Multiples Value
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Based on $/BOE market multiples
EUR (Remaining)
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$/BOE Multiple
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Annual Net Revenue
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$/Flowing bbl
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Annual Net Cash Flow & Cumulative PV
Price Sensitivity (PV-10 Value)
| Oil Price | PV-10 Value | % Change |
|---|
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How to Value an Oil & Gas Well
Well valuation is essential for acquisitions, divestitures, reserve lending, and strategic planning. The two most common approaches are discounted cash flow (DCF) analysis and market multiples ($/BOE or $/flowing barrel). A proper valuation considers remaining reserves, production decline, commodity prices, operating costs, and the time value of money.
DCF (PV-10) Method
PV-10 is the present value of estimated future net revenues discounted at 10% per year. It is the SEC-standard metric for reserve valuation and the most widely used benchmark in A&D transactions. This calculator projects monthly production using exponential decline, applies commodity prices and operating costs, then discounts net cash flows to present value.
Market Multiples Method
In active A&D markets, PDP reserves typically trade at $4-$12 per BOE depending on basin, decline rate, and commodity mix. Permian Basin assets command premiums ($8-$12/BOE) while mature conventional assets may trade at $4-$6/BOE. The $/flowing barrel metric ($20,000-$60,000 per daily BOE) is also common for quick valuations.
Important Caveats
- This is a screening tool, not a formal reserve report. Professional valuations require detailed engineering analysis.
- PDP (Proved Developed Producing) values do not include PDNP or PUD reserves.
- Actual transaction values depend on asset quality, operator reputation, well condition, and market timing.
- Environmental liabilities (P&A costs) can significantly reduce asset value for mature wells.
Market multiples based on publicly reported A&D transactions (2024-2026). All valuations are estimates for screening purposes only. Contact us for professional reserve engineering and valuation services.