What is 'countable well' in SAP IS-OIL-PRA-REV - Revenue?

countable well - Overview

• Component: IS-OIL-PRA-REV

• Component Name: Revenue

• Description: A well that produces volumes applicable for gas step scales, or a well that produces more than 15 days in a month applicable for oil step scales and oil sliding scales. For gas sliding scales, the concept of a countable well is not applicable.

countable well - Details

• 
  Key Concepts: 
  Countable well is a term used in the SAP IS-OIL-PRA-REV Revenue Recognition component. It refers to a well that has been identified as having the potential to produce revenue. This revenue is then recognized in the company’s financial statements. 
  
  How to use it: 
  In order to use countable well, companies must first identify which wells have the potential to produce revenue. This can be done by analyzing the geological data associated with each well and determining which ones are likely to produce a profit. Once identified, the company can then recognize the revenue associated with these wells in their financial statements. 
  
  Tips & Tricks: 
  When identifying countable wells, it is important to consider all of the factors that could affect the potential for revenue production. This includes factors such as the depth of the well, the type of rock formation, and any other geological data that could influence the potential for profit. 
  
  Related Information: 
  The SAP IS-OIL-PRA-REV Revenue Recognition component is designed to help companies accurately recognize revenue from their oil and gas operations. It also provides tools for analyzing and managing production data, as well as tracking costs associated with each well.