Industry: Petroleum

Function: Corporate Services

Value-Added Results	Performance Standards
New reserves • New trends and prospects	• 1 million barrels of reserves additions net to the Company. • 30%—50% overall success rate on wildcat drilling. • Average of 1 economically successful major prospect/year. • Team and VP Exploration are satisfied that the amount of effort matches the potential.
Subsurface interpretations	• Management is satisfied that: • Seismic data ties together. • Log correlations look reasonable and are integrated with seismic data. • All the available data is used and fits the interpretations. • Conforms to known models. • Fits engineering data. • Looks beyond known producing horizons. • Interpretations identify new opportunities. • Meets agreed-upon deadline. • Management agrees that time spent matches potential. • Exceeds = Maps and interpretations fit the drilling data.
Recognition of depositional environment	• VP Exploration is satisfied that there is: • Integration among log, seismic and production data. • Integration of data outside the local trend into a regional depositional framework.
• Log analysis	• Other team members are satisfied that the interpretation: • Integrate all relevant data. • Makes a decision.
• Volumetric maps • Structure map • Isopach map • Recovery factors	• Other team members are satisfied that the maps: • Have contours that match the structural and net sand maps. • Are consistent with the reservoir and seismic data. • Wildcat well information matches the maps. • Wildcat well production matches the predicted recovery factor.
Log correlation and zone identification	• Geophysicist and other team members are satisfied that the correlations and zones: • Differentiate between structural and stratigraphic effects. • Are consistent with all available data. • Met agreed-upon deadline.
Drill well objectives and design criteria	• Operations Manager and Drilling Engineer are satisfied that the: • Formation objectives are clearly identified. • Evaluation procedures fit the region and are cost-effective. • Well parameters are accurate.
Risk assessment	• Team members and management say risk looks realistic based on appropriate weighting of all available data.
Well performance predictions	• Team members and management say the exploration objectives properly weigh and incorporate all relevant data. • Exceeds = Well comes in as projected or better.
Reserves estimate	• VP Exploration is satisfied that the subsurface, seismic and nearby production data agree. • Exceeds = Actual well reserves match predictions.
Completed projects	• Work isn’t held up waiting for answers. • Schedule is met. • Exceeds = Comes in ahead of schedule and/or below budget.