Perform an analysis on a hypothetical discovery based on the following information: Field Size 1.4 Tcf Production/Reserve

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Perform an analysis on a hypothetical discovery based on the following information:

Field Size 1.4 Tcf

Production/Reserve Ratio 7% of the original field size starting producing year 3

Gas Price $3.5/Mcf

CapEx $1/Mcf capitalized in 5 years, straight-line depreciation

Operating Cost $0.8/Mcf

Royalty 10%

Government Take 40%

Cost recovery limit 60% of gross revenue

Discount Rate 10%

Income Tax Rate 33%

Allow cost recovery carry forward

Evaluate the discovery and evaluate the producing gas reserve: you need to calculate the total worth, worth to the company, government take, value in terms of entitlement interest and working interest for both the discovery and producing gas reserve each.

Posted Date: May 13, 2024 02:21 AM

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Perform an analysis on a hypothetical discovery based on the following information: Field Size 1.4 Tcf Production/Reserve

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