We are excited to announce the improvement in production allocation within the Novi Insight Engine product. Operators and minerals companies have given Novi the license to publish their proprietary, well-level production data, which we provide to our customers through Insight Engine.
Production data is the foundation of any analysis or valuation. Key states like Texas, Louisiana, and Oklahoma only provide production data at the lease level (which can include dozens or hundreds of wells), which means that you have to estimate the well-level production. Novi already has the industry-leading allocation algorithm, but we are always looking to improve, and actual well-level data is the gold standard.
With the addition of proprietary production data, our customers can be confident in the accuracy of Novi’s production data, with minimal errors from lease allocation or other issues from state regulatory agencies. As of the end of 2022, just two months after the program’s launch, we already have actual production for over 13% of total tight oil production in Texas, across 50 different operators. In the Midland Basin, this percentage of total production covered is 30%! These numbers will continue to increase in the coming months, as we grow the program.
Customers who participate in the program include a range of operators and minerals companies. These companies share their actual, well-level production data with Novi through secure channels, which are rolled up to monthly intervals. The data quality is checked across multiple sources, flagging any issues. If the data covers an incomplete record, such as partial well history or only part of a lease, we incorporate what we do have to more accurately allocate the rest of the lease or well history. This allows us to gain benefit for a wide number of wells. Within our production database, we then flag whether the data is from our proprietary production sharing or not.
Ultimately, this gives our customers access to the most accurate production data possible, using proprietary sources that simply can’t be accessed anywhere else. At ~500,000 bbl/d tight oil production in Texas, this data represents more production than any single operator.
Having accurate historical production data allows operators and investors to accurately analyze well performance, improves investment decisions, and minimizes work forecasting around noisy allocated data.
Tired of dealing with inaccurate and unreliable US oil & gas production data?
Upgrade your data quality with Novi. Get access to actual production data without any errors from lease allocation or other production data sources. Request your personalized demo today.
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