Question: KOC is trying to make a decision between two projects, the first project or gas reservoir B, that is estimated to produce 120 BCF of

KOC is trying to make a decision between two projects, the first project or gas reservoir B, that is estimated to produce 120 BCF of natural gas having a heating value of 1400 BTU/SCF. The gas price for this type of gas is expected to be $3.25/MCF. Liquid gas Ratio for this field is measured and is equal to 10 bbl/MCF and the cost of produced Liquid or ( condensate) is 75 USD/bbl. The other project is for gas reservoir A that has a better quality of gas with a higher heating value of 2300BTU/SCF. This reservoir however, has less amount of gas, which is around 65 BCF, liquid to gas ratio for this field is 15 bbl/MCF, gas price 6 USD/MCF and the price of this reservoir produced condensate is higher and estimated to be 85 USD/bbl. The gas oil equivalent for gas reservoir B is measured and considered to be 8 bbl/MCF. Both projects will have the same cost of drilling and completion ( $20MMM) Note: 1bbL=6MCF Calculate BOE and BOEc for Both Projects

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