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Calculation Sheet

Geologists, Engineers and Investment Analysts

Calculation Title:
Group 1 KON1 Unit Technical Cost Estimation
Calculation Number: 243-RES-003
1.0 Objective
To generate Group one KON 1 Unit Technical Cost
2.0 References
2.1) Contingent resource Values of 5Bcf, 10Bcf, 20Bcf, 25Bcf and 50Bcf obtained from G and G volumetric estimation

3.0 Assumptions

4.0 Conclusion
4.1 Unit Technical cost Estimation
Transmission Exploration and Exploration and
Contingent
Unit Technical
Cost
Production Cost Production Cost
Cost ($/MMBtu) Resources (Bcf)
($/MMBtu/2Km)
($/Mcf)
($/MMBtu)

Average Values

0.000296885

1.7732
1.1826
0.9613
0.8874
0.7693
0.7103

1.7333
1.1560
0.9397
0.8675
0.7520
0.6943

1.7336
1.1563
0.9400
0.8678
0.7523
0.6946

5
10
20
25
50
100

5.0 Calculation

6.0 Attachments:

Revision
0
Date 5 September 2016
By
GM
Checked
GE
Approved
ID

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Calculation Sheet

Geologists, Engineers and Investment Analysts

Calculation Title:
Group 1 KON1 Unit Technical Cost Estimation
Calculation Number: 243-RES-003
5.0 Calculation(Continued)
5.1 Group 1 KON1 Unit Capital Cost

Yearly
1
2
3
4
5
6
7
8
9
10
11

Total Gas
Total Gas
Delivered
Delivered from
from 2 wells
single well (Mscf)
(Mscf)
396,102
877,256
396,102
877,256
396,102
877,256
396,102
877,256
253,505
561,444
162,243
359,324
103,836
229,967
66,455
147,179
42,531
94,195
27,220
60,285
17,421
38,582

Qo

CI

0.88
1.75
2.63
3.51
4.07
4.43
4.66
4.81
4.90
4.96
5.00

0.504
0.548
0.582
0.610
0.627
0.637
0.643
0.647
0.649
0.651
0.652

CI = ao + a1 Qo 0.5 + a2 Qo

CI
Qo
a0, a1, a2
ao
a1
a2

Unit capital cost of the pipeline (million $/Km)


Pipeline capacity (Bcf/year)
Empirical coefficients
0.4
0.11
0.0012

Revision
0
Date 5 September 2016
By
GM
Checked
GE
Approved
ID

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Calculation Sheet

Geologists, Engineers and Investment Analysts

Calculation Title:
Calculation Number:

Group 1 KON1 Gas Cost Estimation


243-RES-003

5.0 Calculation(Continued)
5.1 Group 1 KON1 Transmission Cost

Years
1
2
3
4
5
6
7
8
9
10
11
Average

CT
CRF
MC
FC
CI
Q
L
m
n
i

Qo
0.88
1.75
2.63
3.51
4.07
4.43
4.66
4.81
4.90
4.96
5.00

CI
0.50
0.55
0.58
0.61
0.63
0.64
0.64
0.65
0.65
0.65
0.65

CT
0.00030554
0.00029941
0.00029728
0.00029618
0.00029571
0.00029547
0.00029534
0.00029526
0.00029521
0.00029518
0.00029516

3.78

0.61

0.00029688

CT = ([(CRF + MC ) CI /Q + FC ] L) / 1.027 *106


Qo = (1+m)Q
CRF = i (1+i)n / (1+i)n-1

Average Transmission cost [$/MMBtu]


Capital Recovery Factor [1/year]
Ratio of annual maintenance cost to initial investment [1/year] (%)
Fuel cost for compression [$/Bcf/km]
Pipeline unit capital cost calculated with equation (1) [$/km]
Average gas volume flow [Bcf/year]
Pipeline length [km]
Pipeline Capacity Margin (%)
Pipeline lifetime (Years)
Interest rate (%)

Revision
0
Date 5 September 2016
By
GM
Checked
GE
Approved
ID

0.00030
7
5
150
0.61
3.78
2
30
30
8

Cost per unit length


0.700
Cost per unit

Cost per unit of length (million $/km)

0.650

0.600

0.550

0.500

0.450

0.400
0.88

1.75

2.63

3.51

4.07

4.43

4.66

Pipeline Capacity (Bcf/year)

4.81

4.90

4.96

5.00

Transmission Cost

0.00030800

0.00030600
Transmission

Transmission Cost [($/MMBtu)/2Km]

0.00030400

0.00030200

0.00030000

0.00029800

0.00029600

0.00029400

0.00029200

0.00029000

0.00028800
0.88

1.75

2.63

3.51

4.07

4.43

4.66

Average Gas Flow (Bcf/Year)

4.81

4.90

4.96

5.00

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Calculation Sheet

Geologists, Engineers and Investment Analysts

Calculation Title:
Calculation Number:

Group 1 KON1 Gas Cost Estimation


243-RES-003

5.0 Calculation(Continued)
5.1 Group 1 KON1 Capital Cost 5Bcf Exploration and Production

Category
a
a
a

Description
Separator
Control valve
Metering
Drilling (1 well)
Flowline
Total equipment cost (A)

'$000
Each
1,200
47
996
7,400
7,000

No of Items
2
3
3
2
2

2D Seismic Acquisition (Km)


CAPEX increment ( unforeseen expediture etc)
Total Exploration and production investment .

400
0%

CAPEX distribution

Year
1
2
3

25

% total
50%
20%
30%

Total
Unit Technical Cost $/Mcf (CAPEX)
Unit Technical Cost $/MMBtu (CAPEX)

Revision
Date
By
Checked
Approved

0
5 September 2016
GM
GE
ID

'$000
Product
2,400
141
2,988
14,800
14,000

10,000

'$000
Total

% of total

34,329

77.4%

10,000
44,329

22.6%
100.0%

CAPEX / year
22,165
8,866
13,299
44,329

1.77
1.73

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Calculation Sheet

Geologists, Engineers and Investment Analysts

Calculation Title:
Calculation Number:

Group 1 KON1 Gas Cost Estimation


243-RES-003

5.0 Calculation(Continued)
5.1 Group 1 KON1 Capital Cost 10Bcf Exploration and Production

Category
a
a
a

Description
Separator
Control valve
Metering
Drilling (1 well)
Flowline
Total equipment cost (A)
2D Seismic Acquisition (Km)
CAPEX increment ( unforeseen expediture etc)
Total Exploration and production investment .

CAPEX distribution

'$000
Each
1,200
47
996
7,400
7,000

No of Items
2
3
3
4
2

400
0%

25

Year
1
2
3

% total
50%
20%
30%

Total

Revision
Date
By
Checked
Approved

1.18

Unit Technical Cost $/MMBtu (CAPEX)

1.16

10,000

'$000
Total

% of total

49,129

83.1%

10,000
59,129

16.9%
100.0%

CAPEX / year
29,565
11,826
17,739
59,129

Unit Technical Cost $/Mcf (CAPEX)

0
5 September 2016
GM
GE
ID

'$000
Product
2,400
141
2,988
29,600
14,000

Es
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Calculation Sheet

Geologists, Engineers and Investment Analysts

Calculation Title:
Group 1 KON1 Gas Cost Estimation
Calculation Number: 243-RES-003
5.0 Calculation(Continued)
5.1 Group 1 KON1 Capital Cost 20Bcf Exploration and Production

Category
a
a
a

Description
Separator
Control valve
Metering
Drilling (1 well)
Flowline
Total equipment cost (A)
2D Seismic Acquisition (Km)
CAPEX increment ( unforeseen expediture etc)
Total Exploration and production investment .

CAPEX distribution

No of Items
2
3
3
9
2

400
0%

'$000
Each
1,200
47
996
7,400
7,000

25

Year
1
2
3

% total
50%
20%
30%

Total

Revision
Date
By
Checked
Approved

0.96

Unit Technical Cost $/MMBtu (CAPEX)

0.94

10,000

'$000
Total

% of total

86,129

89.6%

10,000
96,129

10.4%
100.0%

CAPEX / year
48,065
19,226
28,839
96,129

Unit Technical Cost $/Mcf (CAPEX)

0
5 September 2016
GM
GE
ID

'$000
Product
2,400
141
2,988
66,600
14,000

Es
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98
6

a y p a se
h

Calculation Sheet

Geologists, Engineers and Investment Analysts

Calculation Title:
Group 1 KON1 Gas Cost Estimation
Calculation Number: 243-RES-003
5.0 Calculation(Continued)
5.1 Group 1 KON1 Capital Cost Exploration and Production

Category
a
a
a

Description

No of Items

Separator
Control valve
Metering
Drilling (1 well)
Flowline
Total equipment cost (A)

2
3
3
11
2

2D Seismic Acquisition (Km)


CAPEX increment ( unforeseen expediture etc)
Total Exploration and production investment .

400
0%

CAPEX distribution

Year
1
2
3

'$000
Each
1,200
47
996
7,400
7,000

25

% total
50%
20%
30%

Total

Revision
Date
By
Checked
Approved

0.89

Unit Technical Cost $/MMBtu (CAPEX)

0.87

10,000

'$000
Total

% of total

100,929

91.0%

10,000
110,929

9.0%
100.0%

CAPEX / year
55,465
22,186
33,279
110,929

Unit Technical Cost $/Mcf (CAPEX)

0
5 September 2016
GM
GE
ID

'$000
Product
2,400
141
2,988
81,400
14,000

Es
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a y p a se
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Calculation Sheet

Geologists, Engineers and Investment Analysts

Calculation Title:
Group 1 KON1 Gas Cost Estimation
Calculation Number: 243-RES-003
5.0 Calculation(Continued)
5.1 Group 1 KON1 Capital Cost 50Bcf Exploration and Production

Category
a
a
a

Description

No of Items

Separator
Control valve
Metering
Drilling (1 well)
Flowline
Total equipment cost (A)

2
3
3
22
2

2D Seismic Acquisition (Km)


CAPEX increment ( unforeseen expediture etc)
Total Exploration and production investment .

400
0%

CAPEX distribution

Year
1
2
3

'$000
Each
1,200
47
996
7,400
7,000

25

% total
50%
20%
30%

Total

Revision
Date
By
Checked
Approved

0.77

Unit Technical Cost $/MMBtu (CAPEX)

0.75

10,000

'$000
Total

% of total

182,329

94.8%

10,000
192,329

5.2%
100.0%

CAPEX / year
96,165
38,466
57,699
192,329

Unit Technical Cost $/Mcf (CAPEX)

0
5 September 2016
GM
GE
ID

'$000
Product
2,400
141
2,988
162,800
14,000

Es
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a y p a se
h

Calculation Sheet

Geologists, Engineers and Investment Analysts

Calculation Title:
Group 1 KON1 Gas Cost Estimation
Calculation Number: 243-RES-003
5.0 Calculation(Continued)
5.1 Group 1 KON1 Capital Cost 100Bcf Exploration and Production

Category
a
a
a

Description

No of Items

Separator
Control valve
Metering
Drilling (1 well)
Flowline
Total equipment cost (A)

2
3
3
44
2

2D Seismic Acquisition (Km)


CAPEX increment ( unforeseen expediture etc)
Total Exploration and production investment .

400
0%

CAPEX distribution

Year
1
2
3

'$000
Each
1,200
47
996
7,400
7,000

25

% total
50%
20%
30%

Total

Revision
Date
By
Checked
Approved

0.71

Unit Technical Cost $/MMBtu (CAPEX)

0.69

10,000

'$000
Total

% of total

345,129

97.2%

10,000
355,129

2.8%
100.0%

CAPEX / year
177,565
71,026
106,539
355,129

Unit Technical Cost $/Mcf (CAPEX)

0
5 September 2016
GM
GE
ID

'$000
Product
2,400
141
2,988
325,600
14,000

Unit Technical Cost


2.0000

1.8000

1.6000

Unit Technical Cost ($/MMBtu/2Km pipeline)

Unit Technical Cost


1.4000

Power (Unit Technical Cost)

1.2000

1.0000

0.8000

y = 1.6894x-0.502

0.6000

0.4000

0.2000

0.0000
5

10

20

25
Contingent Resources (Bcf)

50

100

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