HWK 9 - ( 29 1 1 discount factor interest rate fraction...

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PGE 203 HWK 8 Due at start of lecture: May 3. Using the production data shown below please construct a table that shows the annual oil and gas production, the net revenue, the costs, and the discounted revenue from the beginning of production through the economic limit year by year. Include a summary of each column in your table as the last line. 300 STBO/day GOR=300 Scf/STBO 1 0.0625 month 100 STBO/month WI=1.0 NRI=0.75 STO=0.046 STG=0.075 STL=0.025 OP=$80/STB GP=$4/MScf LOE=$5,000/month Discount (interest) rate = 20%/year oi q n EL = = = You may assume the drilling and completion cost is $4,000,000. The discount rate can be computed using:
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Unformatted text preview: ( 29 1 1 discount factor interest rate fraction year t DF i DF i t = + = = = The discounted value of the net revenue in a given year is ( 29 ( 29 ( 29 present value of the net income $ net revenue for a given year $ discount factor for the given year PV NI DF PV NI DF = = = = For the first year your table should start out as follows. Year Cumulative Oil Gross Oil Gross Gas Net Reveue LOE Investment Profit/Loss Present Value Cumulative Cumulative STB STB/year MScf/year $ $ $ $ $ Profit/Loss $ Present Value $ 1 78,512 78,512 23,554 4,439,846 60,000 4,000,000 379,846 316,538 379,846 316,538...
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