Question: Use the below inputs to Compute discounted net cash flow starting from development period. development period Initial term 5 years. production period Initial term 20

Use the below inputs to Compute discounted net cash flow starting from development period.

development period

Initial term 5 years.

production period

Initial term 20 years.

Royalty

10%

Cost Recovery

40%

Exploration costs

$72mm

Tax rate

35%

Capital costs

$508mm, assume to be incurred during the 5 years of development.

Depreciation rate

20% straight

Fixed operating costs

$20mm/year

Variable operating costs

$ 2/bbl.

Reserves

250mm barrels

discount rate

10%

Oil price

65 $/bbl.

Some instructions that can help.

Use the below inputs to Compute discounted net cash flow starting from

how View 11442067 Product Activation Failed Office Timeline Acrobat PDFelement Tell me what you want to do A rest Direction DOC Agnes AL- Coment to smann- 4) Shape Ourine Find Replace Sche Ed NET CASHFLOW = CASH INFLOW - CASH OUTFLOW CASH INFLOW = Revenue = Price x Production > CASH OUTFLOW = Revenue - Royalty - Opex - Capex - Tax and, Royalty - Royalty Rate x Revenue Tax = Tax Rate x (Revenue - Royalty - Opex - Capital Allowance) Therefore, NET CASHFLOW = (Price x Production) - Royalty Rate x Price x Production) - Opex . Cap Tax Rate x (Price x Production) - Royalty - Opex - Capital Allowance NET REVENUES = (Price x Production) x ( 1 - RoyRate ) x (1 - Tax Rate) A NET CAPEX minus Capex - TaxRate Capital Allowance A NET OPEX minus Opex x ( 1 Tax Rate) (1) Example from Rayahy Tax fiscale You are screen sharing Stop Sh how View 11442067 Product Activation Failed Office Timeline Acrobat PDFelement Tell me what you want to do A rest Direction DOC Agnes AL- Coment to smann- 4) Shape Ourine Find Replace Sche Ed NET CASHFLOW = CASH INFLOW - CASH OUTFLOW CASH INFLOW = Revenue = Price x Production > CASH OUTFLOW = Revenue - Royalty - Opex - Capex - Tax and, Royalty - Royalty Rate x Revenue Tax = Tax Rate x (Revenue - Royalty - Opex - Capital Allowance) Therefore, NET CASHFLOW = (Price x Production) - Royalty Rate x Price x Production) - Opex . Cap Tax Rate x (Price x Production) - Royalty - Opex - Capital Allowance NET REVENUES = (Price x Production) x ( 1 - RoyRate ) x (1 - Tax Rate) A NET CAPEX minus Capex - TaxRate Capital Allowance A NET OPEX minus Opex x ( 1 Tax Rate) (1) Example from Rayahy Tax fiscale You are screen sharing Stop Sh

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