Create a Vertical DCF in Microsoft Excel, Using this information:

Vertical: Smaller capital outlay, however, more wells are generally required due to smaller drainage area (the portion of the reserve that a well can access). Preliminary designs indicate project requires 100 Vertical wells.

Create a Vertical DCF in Microsoft Excel, Using this information:

Vertical: Smaller capital outlay, however, more wells are generally required due to smaller drainage area (the portion of the reserve that a well can access). Preliminary designs indicate project requires 100 Vertical wells.

Notes ^ 1 Contract specifies that this is a fixed price of gas at the wellhead over the life of project. 3 State Royalties are tax deductible. ^ 4 Tax is paid in the year of income. Note that it is assumed that any tax loses in any year will offset tax gains within the Primitive Energy tax consolidated group. 5 Capital expenditure on wells is recorded at the start of year in which the well is drilled. ^6 Wells must operate for stated life to ensure well pressure is sufficiently low for well capping. ^7 All revenues and operating expenses are assumed to occur at the end of given year. ^8 Straight Line depreciation method (depreciating down to zero over the life of the well). 9 Wages and other operating expenses are all captured by the operating cost per GJ. ^10 Given the nature of the project, supply and servicing contracts, project has no working capital requirements. ^11 Wells drilled in years as indicated. Capital expenditure recorded at the beginning of the year. For example, the beginning of Year 1 corresponds to the 0 column