HWK 9-1 - PV NI DF PV NI DF = = = = The table is shown...

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PGE 203 HWK 9 Solution 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: ( 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
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Unformatted text preview: PV NI DF PV NI DF = = = = The table is shown below. 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 2 115,598 37,086 11,126 2,097,235 60,000 2,037,235 1,414,746 2,417,080 1,731,284 3 133,117 17,518 5,256 990,663 60,000 930,663 538,578 3,347,743 2,269,862 4 141,392 8,275 2,483 467,956 60,000 407,956 196,738 3,755,700 2,466,601 5 145,301 3,909 1,173 221,047 60,000 161,047 64,721 3,916,747 2,531,322 6 147,147 1,846 554 104,415 60,000 44,415 14,875 3,961,162 2,546,196 Total 147,147 147,147 44,144 8,321,162 360,000 4,000,000 3,961,162 2,546,196 3,961,162 2,546,196...
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This note was uploaded on 11/03/2010 for the course PGE 203 taught by Professor Taylor during the Spring '08 term at University of Texas at Austin.

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HWK 9-1 - PV NI DF PV NI DF = = = = The table is shown...

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