Welcome To The Questerre Energy HUB On AGORACOM

(Edit this message through the "fast facts" section)

Free
Message: Friday Funny
Reply New Message
Prev Message Back To Forum Threaded View Next Message


Quebec Lowlands Economics
Typical Well
First Production (year) 2009
First year average rate (cf/d) 1,370,000 Initial 30 Day Rate 2,000,000
Reserves (cf) 2,400,000 First year decline 0.63
Operating costs (mcf) 1.00
Royalty Rate 0.13
Tax Rate 0.35
Price per mcf (6.75+1.05) US 10.03
Capital Cost of one well 3,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017
First year average rate (cf/d) 1,370,000 938,450 642,838 440,344 301,636 206,621 141,535 96,952 66,412
Gas Revenue 5,015,502 3,435,619 2,353,399 1,612,078 1,104,274 756,427 518,153 354,935 243,130
Operating Costs 500,050 342,534 234,636 160,726 110,097 75,416 51,660 35,387 24,240
Royalty 626,938 429,452 294,175 201,510 138,034 94,553 64,769 44,367 30,391
Income Before Tax 3,888,514 2,663,632 1,824,588 1,249,843 856,142 586,457 401,723 275,180 188,499
Income Tax 310,980 932,271 638,606 437,445 299,650 205,260 140,603 96,313 65,975
Cash Flow 3,577,534 1,731,361 1,185,982 812,398 556,492 381,197 261,120 178,867 122,524
NPV(10) after tax 3,959,220
IRR 76%
NPV(10) is the net value of the gas flows after Income Tax (minus the cost of the well)
Forest Oil intends to hookup the current pilot wells onto the gas pipeline, they can lock in the current
value of natural gas by purchasing natural gas futures.
Reply New Message
Prev Message Back To Forum Threaded View Next Message
Share
Share
New Message
Please login to post a reply