Question: Please solve the question using EXCEL and provide the used formulas in solving it :) For an optimum recovery of an oil field, two enhanced

Please solve the question using EXCEL and provide the used formulas

in solving it :) For an optimum recovery of an oil field,

Please solve the question using EXCEL and provide the used formulas in solving it :)

For an optimum recovery of an oil field, two enhanced oil recovery (EOR) techniques. namely waterflooding and water alternating gas (WAG) injection processes will be evaluated economically. The investment and production performance schedules for both processes are provided as below. INVESTMENT (10008) Years 2020 2021 2022 WATERFLOOD Wells 15000 3000 Other's 5000 5000 2000 WAG PROCESS Wells Others 10000 7000 4000 10000 4000 12000 Oil Price: 45 $/bbi Operation Cost: 10.5 $/bbl for water flood 15.5 $/bbl for WAG process PRODUCTION PERFORMANCE Oil Production (WAG) Years 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Oil Production (Waterflood) (BOPD) 6420 6415 5628 5058 4621 4088 3885 3681 3498 3340 (BOPD) 3160 7406 10166 9841 8955 7195 5860 4880 4218 3701 Depreciation Charge: 30% of the investment for wells and 100% of the investment for the other equipment will be depreciated by the straight line through the life-time of the plan Royalty: 1/8*Gross production/income Based on the provided data, compare both alternatives (Waterflooding & WAG) based on a) Payout time, b) Discounted net profit to investment ratio (using discount rate of 24%). c) Present worth of after-tax net cash flow (using discount rate of 24%). d) Discounted cash flow rate of retur (DCFROR) if the MARR is 46%. For an optimum recovery of an oil field, two enhanced oil recovery (EOR) techniques. namely waterflooding and water alternating gas (WAG) injection processes will be evaluated economically. The investment and production performance schedules for both processes are provided as below. INVESTMENT (10008) Years 2020 2021 2022 WATERFLOOD Wells 15000 3000 Other's 5000 5000 2000 WAG PROCESS Wells Others 10000 7000 4000 10000 4000 12000 Oil Price: 45 $/bbi Operation Cost: 10.5 $/bbl for water flood 15.5 $/bbl for WAG process PRODUCTION PERFORMANCE Oil Production (WAG) Years 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Oil Production (Waterflood) (BOPD) 6420 6415 5628 5058 4621 4088 3885 3681 3498 3340 (BOPD) 3160 7406 10166 9841 8955 7195 5860 4880 4218 3701 Depreciation Charge: 30% of the investment for wells and 100% of the investment for the other equipment will be depreciated by the straight line through the life-time of the plan Royalty: 1/8*Gross production/income Based on the provided data, compare both alternatives (Waterflooding & WAG) based on a) Payout time, b) Discounted net profit to investment ratio (using discount rate of 24%). c) Present worth of after-tax net cash flow (using discount rate of 24%). d) Discounted cash flow rate of retur (DCFROR) if the MARR is 46%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Please help with this. Text below BCS 101 - Programming Concepts and Problem Solving This course will provide an introduction to programming logic and problem solving techniques using different...

I need your help with this: Can you please quote from the attached chapters / resource if possible? Corporations often use different costs of capital for different operating divisions. Using an...

TANGLEWOOD CASEBOOK for use with STAFFING ORGANIZATIONS 5th Ed. Kammeyer-Mueller 1 TANGLEWOOD CASEBOOK To accompany Staffing Organizations, fifth edition, 2006. Prepared by John Kammeyer-Mueller...

ANALYSIS OF THE MOLVANIAN FARMOUT AGREEMENT Your client, Rockies Oil Co., has asked you to provide advice based on a Farmout Agreement (marked "Appendix A") and the following facts: Rockies Oil and...

Please create an excel spreadsheet with formulas for requirement 5 (pages 24-27)and requirement 6 (pages 28-31)only. Please submit in excel format. Both questions and answers are provided for...

8.1. Dulles Electric Company buys 1 million tons of coal annually to burn at its power plant. The company wants to invest in a unit train that will haul coal from the mine to the power house, where...

U.S. Army Cost Benefit Analysis Guide 12 JANUARY 2010 Prepared by Office of the Deputy Assistant Secretary of the Army (Cost and Economics) Version 1.0 U.S. Army Cost Benefit Analysis Guide - V 1.0 2...

Project Management Casebook David I. Cleland, Karen M. Bursic, Richard Puerzer, and A. Yaroslav Vlasak Library of Congress Cataloging-in-PublicationData Project management casebook /edited by David...

Find the first four orthogonal polynomials under the Sobolev H1 inner product cf. Exercise 3.1.25. |(S. 8) = |[f(x)g(x)+ f'(x)g'(x)]dx,

(a) The sets A={2,4,6} and B={x,y,z}. Which of the following expres- sions (if any) are valid relations from A onto B? Explain your rea- soning. i. {(2, ), (4, ), (4,2), (6, 2)} ii. {} iii. {(2, x)}...

The sale of gift cards by a company is a direct example of: 2 2 Multiple Choice 0 0 . 1 2 . 4 7 Sales tax payable. Current portion of long - term debt. Deferred revenues. Contingencies.

Which of the following is not considered one of the key components of effective teams? Group of answer choices adequate resources climate of trust company reputation leadership and structure member...

1. Recall the last time you were angry at another person or were a victim of a situation that made you angry. For example, someone you trusted divulged some personal information about your family...

1. This chapter reveals that a persons needs serve as motivators toward achieving challenging goals. Analyze what you believe drives persons like Phelps, Cox, and Armstrong to achieve these extremes.

d. If you could relive the situation, would you do anything differently? Explain.