This form is used to document the estimated total costs for tangibles and intangibles as it relates to the exploration and/or development of oil, gas, and minerals work project. It also provides formal approval for the act or process of paying out or disbursement.
Louisiana Cost Estimate and Authorization For Expenditure (AFE) is a document used in the oil and gas industry to provide a detailed cost breakdown and obtain approval for proposed projects or operations in the state of Louisiana. This authorization helps ensure that all expenditures are in line with the budget and prevent any unnecessary spending. Keywords: Louisiana, cost estimate, authorization for expenditure, AFE, oil and gas industry, projects, operations, budget, spending. Different Types of Louisiana Cost Estimate and Authorization For Expenditure (AFE): 1. Drilling AFE: This type of AFE is specific to drilling activities. It includes the estimated costs associated with drilling a well, such as rig rental, equipment rental, cementing, well control services, and other related expenses. 2. Production AFE: A production AFE focuses on the costs associated with maintaining and operating an oil or gas well once it is drilled and in production. It includes expenses like production equipment, ongoing maintenance, workforce, and related operational costs. 3. Work over AFE: Work over Ages are prepared when an existing well needs intervention or repair work. These Ages outline the estimated costs for well interventions, such as well bore clean outs, perforation, stimulation, or equipment replacement. 4. Facility AFE: Facility Ages concentrate on building or modifying infrastructure related to oil and gas operations, such as pipelines, storage tanks, processing facilities, and transportation systems. These Ages provide detailed cost estimates for constructing, upgrading, or expanding these facilities. 5. Abandonment AFE: This type of AFE is created when it is determined that a well or facility is no longer productive or economically viable. It outlines the costs associated with properly abandoning the well or facility, including plugging wells, removing equipment, and restoring the site to its original condition. Each type of AFE plays a crucial role in the oil and gas industry, ensuring that projects and operations are planned, executed, and financially managed effectively and efficiently within the state of Louisiana.
