|
NPV(10) is the net value of the gas flows after Income Tax (minus the cost of the well)
| First Production (year) |
|
2010 |
|
|
|
|
| First year average rate (cf/d) |
|
1,370,000 |
|
Initial 30 Day Rate |
2,000,000 |
| Reserves (cf) |
|
|
2,400,000,000 |
|
First year decline |
0.63 |
| Operating costs (mcf) |
|
1.50 |
|
|
|
|
| Royalty Rate |
0.13 |
|
0.13 |
0.13 |
|
|
|
| Tax Rate |
|
|
|
0.35 |
|
|
|
|
| Price per mcf |
(4.23 + .6) |
6.00 |
|
|
|
|
| Capital Cost of one well |
|
3,000,000 |
|
|
|
|
| NPV(10) after tax |
|
1,078,763 |
|
|
|
|
|
|
|
|
|
|
| IRR after tax |
|
28% |
|
|
|
|
|
|
|
|
|
|
|
NPV(10) is the net value of the gas flows after Income Tax (minus the cost of the well)
| First Production (year) |
|
2010 |
|
|
|
|
| First year average rate (cf/d) |
|
1,370,000 |
|
Initial 30 Day Rate |
2,000,000 |
| Reserves (cf) |
|
|
2,400,000,000 |
|
First year decline |
0.63 |
| Operating costs (mcf) |
|
1.50 |
|
|
|
|
| Royalty Rate |
0.13 |
|
0.00 |
0.13 |
|
|
|
| Tax Rate |
|
|
|
0.35 |
|
|
|
|
| Price per mcf |
(4.23 + .6) |
6.00 |
|
|
|
|
| Capital Cost of one well |
|
3,000,000 |
|
|
|
|
|
|
